Since the beginning of the COVID-19 pandemic, the Spanish Government has approved a number of financial support measures to address companies’ liquidity requirements, including the creation of two guarantee schemes (líneas de avales) managed through the Spanish Official Credit Institute (Instituto de Crédito Oficial – ICO) in relation to financings granted to companies and the self-employed:

The Spanish Government has extended the various support measures aimed at helping Spain deal with the economic impact of COVID-19.

This blog post summarises the most relevant new insolvency measures of Royal Decree-Law 5/2021 (‘the RDL’), which was approved on 12 March 2021 and entered into force on 13 March 2021.

Debtor's duty to file for insolvency

The deadline to file for voluntary insolvency has been extended until 31 December 2021 (the previous deadline was 14 March 2021).

Editor’s Note:  One of the many fascinating things about restructuring work is its willingness to evolve by borrowing from other areas of the law.  Just as business practices change, new financing techniques evolve, and transactions become more complex, the bankruptcy world must adapt as well, to allow for a well functioning insolvency system and not a stilted, out of date process.  To that end, we at The Bankruptcy Cave love finding curious decisions in tangential fields of the law, and thinking about how they may change bankruptcy practice, or how bankruptcy pract