Judicial Approval and Challenges to Restructuring Plans in Spain
The judicial approval of a restructuring plan represents a vital mechanism for the debtor, protecting essential business aspects necessary to ensure survival.
The Economic Unit: Fundamental Pillar in Partial Spin-offs
The economic unit encompasses the active and passive elements constituting a ‘company’ or ‘autonomous productive unit’ within the company. The transfer of an authentic economic unit is an essential requirement for partial spin-offs in Spain.
End of the insolvency moratorium in Spain: consequences for debtors
The bankruptcy moratorium in Spain, in force since 14 March 2020 and already extended several times, ends on 30 June 2022.
End of the moratorium on insolvency proceedings in Spain: consequences for creditors
After the insolvency proceedings begin, creditors have a one-month limit to communicate their claims against the insolvent debtor.
The foreign creditor in bankruptcy proceedings in Spain (3): Termination of contracts
Regarding the termination of contracts with reciprocal obligations in the context of bankruptcy declaration, the Spanish regulations distinguish between contracts pending fulfilment by one of the parties or by both parties.
The foreign creditor in bankruptcy proceedings in Spain (2): The communication of credit
The deadline for the communication of credit by the foreign creditor is one month after the publication of the declaration of bankruptcy in the Spanish Official Gazette (BOE). Although it is not mandatory, the foreign creditor should make such communication for its qualification and subsequent payment.
The foreign creditor in bankruptcy proceedings in Spain (1): Bankruptcy processing
Declaring insolvency proceedings in Spain entails its consideration as “main bankruptcy” and implies the inclusion of the debtor’s assets, regardless of whether or not they are in Spain, and that, with certain exceptions, Spanish law applies.
The foreign creditor in bankruptcy proceedings in Spain (4): Liability of debtors and directors
Spanish bankruptcy regulations list the conducts that determine the liability of the directors in bankruptcy proceedings. The consequences of such behaviour include disqualification, loss of rights associated with the position of a creditor of a bankruptcy or a sentence to cover the insolvency deficit.
Arbitration in Spain in times of COVID
During the COVID-19 pandemic, arbitration stands out as an advantageous alternative to settle legal disputes between companies. The ordinary jurisdiction has suffered a slowdown in its processes and does not provide the fast and effective response demanded by current market operators.
Is Company Directors’ Remuneration Tax deductible in Spain?
The remuneration of directors of a Spanish company is deductible from the corporate income tax. However, the company’s bylaws must expressly contemplate the remunerated character of the post, and the remuneration scheme used to pay the director must be determined with certainty.
