Restructuring and Insolvency Newsletter - June 2022
Valencia Provincial Appeal Court limits commission fees of insolvency auction specialised companies
The appeal court has issued a decision which constitutes a reminder to be careful in relation to practices that have been occurring in certain out-of-court auctions within liquidation proceedings. Particularly, it rejects the possibility that a commission fee is collected when the winning bidder is the secured creditor whose security interest levies the asset sold.
International insolvency: the three novelties introduced in the Insolvency Law Reform Bill
Although the final wording will be approved after its passage through parliament, the chapter on international insolvency is among those that received the fewest amendments and therefore is expected to see the fewest changes. We therefore predict that all or a large part of the comments made below will also be applicable to the wording of the Insolvency Law that will be approved at the end of the process.
Court of Justice of the European Union rules on protection of employment contracts in pre-pack insolvency procedures
The European Court has issued a sentence of special relevance for the operation and effectiveness of the “pre-pack” insolvency procedures. Specifically, it clarifies the requirements that must be met to respect the rights of workers in the event of business transfers.
News
- Insolvency Law Reform Bill published
- Approval of European Directive on credit servicers and credit purchasers
- Attorney General’s Office publishes information notices on collection system applicable to ICO loans
- New ICO guarantee facility approved amounting to €10,000 million
Judgments
- CJEU pronounces on “mobile conflict” and the effects of Brexit in relation to insolvency proceedings
- Two Commercial Courts passes contradictory resolutions in relation to the requirement of prior payment by guarantor for subrogation of the Ministry of Economic Affairs and Digital Transformation in respect of amounts of ICO loans
- Justice system lawyer is entitled to allocate assets in the liquidation phase at a value below 50% of that attributed by the insolvency practitioner
- The individual named to carry out a legal entity’s director duties may be affected by the assessment of the entity’s insolvency
- Directors may be liable for delay in petitioning for insolvency order even during the moratorium on obligation to petition for insolvency order
- Debt discharge relief does not cancel the mortgage, nor does it include third party owners who are not debtor
- Guarantee facilities considered to be financial claims for the purposes of calculating the majorities for court sanction of the refinancing agreement
- Special priority status held in relation to a mortgage transferred by a financial institution belongs to recipient asset securitization fund
Publications and events where Garrigues participates
- ‘Legal challenges and opportunities in corporate insolvency advice’
- 2022 TMA Europe’s Annual European Conference
- ‘Formation and class dragging in the restructuring plan’
- ‘International insolvency and pre-insolvency proceedings: three new provisions in the Insolvency Law Reform Bill’
- X Aranzadi Insolvency and Corporate Forum in Madrid
- ‘On the impact of res judicata and insolvency orders on main debtors in claims against jointly and severally liable debtors’
- Conference on International insolvency and the Capetown Convention, as part of the session on the Cape Town system of security interests: Towards implementation of the MAC Protocol
- ‘New legislation on international insolvency in the Insolvency Law Reform Bill’
- ‘Majorities and cramdown in pre-insolvency restructurings’
- ‘Good conduct of company directors in pre-insolvency period’
Contacts
