Compensation of a debt made after the debtor’s bankruptcy declaration via the appropriation of securities pledged by virtue of a financial guarantee, is admitted.

The validity of a transaction assessed as “compensation” that was carried out after the bankruptcy declaration of the company in debt was questioned before the Supreme Court. The credit entity applied the value obtained from the reimbursement of an investment fund that had been pledged to secure a credit policy to reduce the debt.

Under Additional Provision Four of the Insolvency Act,¹ which regulates the courts’ sanction of refinancing agreements, the effects of the moratorium established in the agreement will be extended to dissenting financial entities, provided that the conditions specified in that precept are fulfilled (where the requisites imposed under article 71.6 of the Insolvency Act regarding the agreement itself are met and where it has been signed by creditors representing at least 75% of the financial entities’ liabilities at the time of the agreement).

The Supreme Court rescinded a payment made to the creditor that petitioned for compulsory insolvency in a case where the creditor withdrew its petition and the debtor applied for voluntary bankruptcy several weeks later.

In its ruling, the Supreme Court made the following significant assertions in respect of insolvency rescission of payments: