Restructuring & Insolvency Newsletter - July 2018
Funds will be able to recover NPLs more quickly following a decision by the Directorate-General of Registries and the Notarial Profession (DGRN) prompted by Garrigues
In an innovative decision rendered on June 28, 2018, the Directorate-General of Registries and the Notarial Profession (DGRN) responded affirmatively to the request for a ruling submitted by Garrigues on behalf of its clients (ten of the most important servicing institutions on the Spanish market ) and confirmed that notaries are able to issue a new enforceable copy to an investor acquiring NPLs secured with a mortgage on real estate if that investor had not already obtained another enforceable copy. According to the DGRN, that new copy entitles the new creditors to access the expedited and privileged mortgage foreclosure procedure. The team was led by Garrigues partner Juan Verdugo. Reports of the result achieved by our Restructuring & Insolvency department hit the Spanish press in Expansión and El Economista.
Since July 1 special form needed in Barcelona to apply for validation of refinancing agreements
On January 16, 2018, the governance committee at Catalonia High Court approved the application form for validation of refinancing agreements, drawn up by the commercial judges in Barcelona. That form has been required since July 1.
Decisions
- Not every sale of a unit of production in an insolvency proceeding is VAT free
- Exclusion from being a transfer of undertakings for labor law purposes in the decision awarding a unit does not relieve purchaser of liability
- DGRN adopts Supreme Court’s view on the requirements to register assets coming from an insolvency proceeding
- Subsequent ratification by insolvency administrator is sufficient for insolvent debtor to retain authority in proceedings in progress
- Supreme Court limits moratorium on enforcement of administrative and employment debts, compelling the insolvency administrator to bring third-party complaints to assert a superior right
- Article 18 of the European Insolvency Regulation does not apply to enforcement proceedings
News and more events
- R&I partner Adrián Thery appointed co-president of Insolvency Section at Madrid Bar Association
- Garrigues, present at top international restructuring & insolvency events
Contacts
