Publications - Restructuring and Insolvency
Spain: Royal Decree-Law 8/2020 of March 17, 2020 launches urgent and extraordinary measures to confront the economic and social impact of COVID-19
The March 18, 2020 edition of the Official State Gazette has published Royal Decree-Law 8/2020 of March 17, 2020 on urgent and extraordinary measures to confront the economic and social impact of COVID-19. The decree-law comes into force on its…
The Supreme Court lifts the protection enjoyed by public claims in ‘fresh start’ scenarios
On July 2, 2019, the Supreme Court delivered a landmark judgment dealing with the requirements to be met to secure the discharge of debts through the so-called ‘fresh start’ mechanism. Under Spanish law, ‘fresh start’ refers…
Acquiring distressed companies’ business units, a guide
We look at the differences and advantages of the Spanish and UK systems, pinpointing the more favorable elements of the Spanish system, designed to give greater security and certainty to the investor.
The ECJ allows Spanish courts to preserve mortgage foreclosure proceedings in the event of early termination of consumer mortgage loans
A judgment of the Court of Justice of the European Union (ECJ) confirms the possibility of replacing an unfair early termination clause in a loan agreement by the application of article 693.2 of the Spanish Civil Procedure Rules (LEC), declaring…
The new Spanish Real Estate Credit Act will modify underwriting and modelling processes of non-performing-loans (NPLs)
The New Real Estate Credit Act, passed by the Spanish Parliament on February 21st 2019 includes a set of brand new rules that will have a direct impact on the underwriting and modelling processes of secured lenders, namely the buyers of non-…
Funds buying mortgages can claim the whole debt in Catalonia also
The Constitutional Court has held unconstitutional a provision in a law passed by the Catalan parliament which, if a loan secured with a home is sold to a third party (a fund usually), allowed the debtor to be released from their debt by paying the…
Spain: Insolvency Litigation Funding
The economic crisis that started to engulf Spain in 2007, which the country has been shaking off little by little, has spurred players in the restructuring market to step out of their comfort zone and go down lesser-trodden paths in Spain. This…
The funds will be able to recover NPL's more quickly following a decision by the Directorate-General of Registries and the Notarial Profession
Garrigues detected that there was no clear guideline that allowed notaries to issue another enforceable copy of the mortgage deed to funds that had acquired NPLs.
NPLs: Second progress report by the European Commission and package of measures to accelerate the reduction of NPEs
On March 14, 2018 the European Commission presented the Second Progress Report on the reduction of non-performing loans (“NPLs”). The report comprises a memo and a factsheet, whose versions in English can be obtained on the…
Brexit and the end of the transition period: insolvency and pre-insolvency impacts from December 31, 2020 onwards
On February 28 last the European Commission published the Draft Agreement on the withdrawal of the United Kingdom from the European Union (“EU”). This draft, based on the Joint agreement submitted by the the negotiators of the EU and the…
New guarantees for the refinancing of personal debt and SME debt
The Direction issued by the DGRN on February 5, 2018, takes a highly practical approach to the initial steps to be taken in arranging an AEP and, above all, clarifies some uncertainties that have previously frustrated the refinancing process.
Battle against the elements
Non-performing loan transactions are a very real topical issue in Spain. 2016 left us with 18 large-scale sales of NPL portfolios made by Spanish banks and savings banks, worth €13 billion euros. It is estimated that in Spain alone NPLs to the…