Restructuring & Insolvency Newsletter - March 2023 | News

Spain - 

The commercial judges of Madrid publish a guide for the appointment of an expert on insolvency pre-pack

The Board of Judges of the Commercial Courts of Madrid approved on February 21, 2023 the Good Practice Guide for the appointment of an expert in the pre-insolvency phase ("pre-pack"). This is a non-binding guide for guidance on the appointment of an expert to monitor the process of competitive sale of production units in the pre-insolvency phase.

The Madrid Bar Association, the Madrid Association of Economists, the Central Association of Commercial and Business Graduates of Madrid and the Institute of Chartered Accountants of Spain (ICJCE) have participated in the preparation of the guide.


Andalucía commercial judges reach a decision on special liquidation rules

The commercial judges of Andalucía came to a decision, at a meeting held in Granada on November 10th and November 11th 2022, regarding the interpretation of the special liquidation rules applicable in insolvency proceedings, adapting them to the reformed liquidation system characterized by the absence of a plan.

In particular, the Andalucía commercial judges confirmed several rules in relation to: (i) assets subject to liquidation transactions; (ii) the liquidation system; (iii) offers to buy business units; (iv) treatment of special preferred rights; (v) charges and Registers; and (vi) payments.


Seville commercial judges reach decisions regarding no-asset insolvency proceedings, the pre-pack insolvency proceeding and indispensable claims for liquidation

The commercial judges sitting in Seville have adopted various decisions relating to a few disputed elements of the revised Insolvency Law, in the wording given by Law 16/2022.

The agreed decisions concern: (i) no-asset insolvency proceedings (link); (ii) structure of the pre-pack insolvency proceeding and petition for insolvency with submission of an offer to buy one or more business units (link); and (iii) indispensable claims for liquidation in cases of insufficient assets available to creditors (link).


The European Commission submits a Proposal for a Directive to harmonize certain aspects of insolvency law across the EU

On December 7th, 2022 the European Commission presented a Proposal for a Directive (Procedure  2022/0408/COD) to harmonize certain aspects of Insolvency Law. The document, entitled “Proposal for a directive of the European Parliament and of the Council: harmonising certain aspects of insolvency law”- is part of a package of measures designed to strengthen the EU’s capital markets.

The Proposal contains a number of minimum harmonization rules which will have to be applicable to companies and entrepreneurs essentially in relation to the following matters: (i) clawback actions; (ii) creditors’ meeting; (iii) asset traceability; (iv) pre-pack proceedings; (v) directors’ duty to petition for an insolvency order; (vi) simplified regime for microenterprises; and (vi) creation by member states of information factsheets on the essential elements of their national insolvency laws which will be published on the e-Justice portal.