Restructuring and Insolvency Work Commentary 1-2015
Today, May 26, 2015, the Official State Gazette (“BOE”) has published Law 9/2015, of May 25, 2015, on urgent insolvency-related measures (the “Law”), which enters into force the following day.
This new law transfers to the Insolvency Law (Ley Concursal or “LC”) the wording of Royal Decree Law 11/2014, of September 5, 2014 (“RDL 11/2014”), which made fundamental amendments to the LC in relation to the classification of claims, the terms of the creditors’ arrangement and the majorities needed for its approval, and the transfer of production units in an insolvency proceeding. For further details on RDL 11/2014, see our special single-topic Commentary.
The passage through parliament of RDL 11/2014 resulted in new amendments being added to the LC; mostly technical enhancements resolving the doubts arisen in the application of earlier reforms. Some other significant new changes were made which are explained below. In one such change, the new Law authorizes the government to prepare and approve a Revised LC to consolidate and harmonize the amendments added in the successive reforms of the LC (2009, 2011 and 2014, principally).
The main amendments introduced by this new reform are as follows:
1. Amendments related to the creditors’ arrangement in insolvency proceedings
2. Amendments related to the liquidation
3. Amendments regarding assessment of the insolvency: causal element included in presumed fault scenarios (art. 165 LC)
4. Amendments regarding the procedure under article 5 bis LC
5. Other amendments
6. Statutory regime applicable to insolvency proceedings in progress