New guarantees for the refinancing of personal debt and SME debt
Spain -
Restructuring & Insolvency Commentary 1-2018
The Directorate-General of Registries and the Notarial Profession (DGRN) recently clarified the legal mechanism known as the Out-of-Court Payment Agreement (acuerdo extrajudicial de pagos or AEP). The AEP is a legal tool designed to settle insolvency situations out of court, through debt refinancing. AEPs can be used by both individuals (entrepreneurs or otherwise) and companies (including non-corporation-type entities), provided that the initial estimate of their debt does not exceed 5 million euros, they have sufficient assets to pay the expenses relating to the AEP and their circumstances are not particularly complex.
Contacts
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![Adrián Thery Martí - Garrigues](/sites/default/files/styles/medium/public/team/photo/adrian_thery_marti_en_20231104.jpg?itok=96MeRdCl)
![Juan Verdugo](/sites/default/files/styles/medium/public/team/photo/juan_verdugo_garcia_en_20240417.jpg?itok=GJ81NpPU)