Restructuring & Insolvency
Final provision number three of the Trade Secrets Law, in force since March 13, 2019, authorized the government to approve a revised wording of the Insolvency Law within eight months. Under that authorization, on March 22 the Ministries of Justice and of Economy and Enterprise submitted a bill for the Revised Insolvency Law.
On June 6 the Council of the European Union approved the Proposal for a Directive of the European Parliament and of the Council on preventive restructuring frameworks, second chance and measures to increase the efficiency of restructuring, insolvency and discharge procedures.
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 valid and not unfair to start mortgage foreclosure in the event of default of at least three monthly instalments.
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.