Restructuring & Insolvency Newsletter - March 2019
Spain -
New door opens for judicial homologation of refinancing agreements after the insolvency order
In an order rendered on December 18, 2018, Madrid Commercial Court no 1 allowed a debtor under an insolvency order to sign and homologate a refinancing agreement after the opening of the insolvency proceedings.
Constitutional Court sets aside option of redeeming mortgages transferred to a fund by delivering only the price paid by the fund
The Constitutional Court has held unconstitutional a provision in Law 24/2015 of the Catalan Parliament allowing the debtor, in the event of transfer for consideration of a loan secured with a home, to release himself from the debt by paying the recipient of the debt the price it had paid plus the statutory interest and costs incurred to claim the debt.
New legislation
- The Real Estate Credit Law introduces a new regime of early termination of mortgage loans on an individual´s main residence
- The new Trade Secrets Law gives the go-ahead for Government to approve revised Insolvency Law
Judgments of interest
- Ranking of claims payable to the government in respect of refunded subsidies depends on when they were granted
- Labor courts will determine whether a transfer of undertakings exists in insolvency sales of business units
- Insolvency judge has jurisdiction to declare that attached goods are necessary for the debtor's activity
- Order homologating a refinancing agreement may be enforced to make a dissenting creditor comply with the agreement's terms
- Contingent claims must qualify as financial claims for the purpose of homologating a refinancing agreement
- Individual enforcement actions may be initiated against a debtor’s assets after an insolvency proceeding on the debtor has ended due to insufficient assets available to creditors
- Judge for main insolvency proceeding does not have jurisdiction to hear action for damages arising from a wrongful act
Publications and events
- Professionals of our Restructuring and Insolvency Department take part in several publications and events
Contacts
