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New provisions for secured creditors in the Spanish Insolvency Act

A new milestone has been reached in the reform process of the Spanish Insolvency Act. On 25 May, the draft bill of the Law 9/2015, of urgent measures in insolvency proceedings, has finally been enacted as law. The new rule “validates” many of the modifications introduced by the latest Royal-Decree Laws, with some changes.
 

Spain, Insolvency & Restructuring, Dentons
The 2014/2015 gradual reform of Spanish Insolvency Act: how it affects the business of investors in distressed debt

1. The reform and its drivers

We are witnessing an unprecedented review of Spanish Law 22/2003 on Insolvency Proceedings (Spanish Insolvency Act or “IA”).  With the recent approval of three Royal Decree-Laws (“RDLs”), namely RDL 4/2014, of 7 March, RDL 11/2014, of 5 September and RDL 1/2015, of 27 February), the Spanish legislator seeks to achieve three main goals:

Spain, Insolvency & Restructuring, Dentons, Refinancing
Bullock cannot save ERISA fiduciary, a sole corporate shareholder whose company failed to make multiemployer fund contributions, from being unable to discharge his liability through personal bankruptcy

Fiduciaries who breach their duties may pay the consequences far longer than they may think, for they may not even be able to escape liability through personal bankruptcy.  In Raso v. Fahey (In re Fahey), No. 11-1118 (June 11, 2013), the U.S Bankruptcy Court for the District of Massachusetts became the first court to apply the new defalcation guidelines laid down by the Supreme Court in Bullock v. BankChampaign, NA, 133 S. Ct.

USA, Employee Benefits & Pensions, Insolvency & Restructuring, Litigation, Seyfarth Shaw LLP, Shareholder, Employee Retirement Income Security Act 1974 (USA), Fiduciary, Bankruptcy Appellate Panel