Cuatrecasas, Gonrcalves Pereira has advised GRUPO EMPRESARIAL ALCO on submitting and processing the early composition agreement with the company's creditors, attaining the approval of the competent court within 10 months of the company's declaration of insolvency.

A company's insolvency is requested by three of its creditors whose credits originated from a syndicated financing agreement signed with other credit institutions. The three creditors seeking the insolvency request that they all be recognized a general privilege of 50% of their credits and that the entirety of their respective credits be considered in calculating this general privilege, excluding subordinated credits only.

This ruling resolves the financial creditors' challenge to the approval of a refinancing agreement extending the deferral stipulated and the modification of the margins added to the Euribor to them. As grounds for their opposition, they claim that the 75% majority of the financial liabilities necessary to extend the reduction of the applicable margin whereby, in their opinion, such reduction entailed debt relief was not present.

First, the court analyses whether the refinancing agreement seeking approval complies with the legal requirements envisaged in Additional Provision 4 LC and confirms this.¹³

Cuatrecasas, Gonrcalves Pereira has advised one of the coordinating institutions on the process for the acquisition of NATRA debt and on the design and implementation of the refinancing, including the execution of a lock-up agreement.

Act 15/2015 regulates voluntary jurisdiction cases processed in the courts, which are legally considered all cases requiring court intervention to protect rights and interests in civil and commercial law matters that do not involve disputes that must be heard in litigation proceedings.

The SC adopts a decision on the inclusion of contractual set-off agreements that document a single financial transaction within the scope of application of Royal Decree-Act 5/2005 and on the insolvency classification of the credits resulting from financial swap, thus settling the disparity of criteria that existed in our lower case law with respect to such matters.

Part 5: Bankruptcy Issues for Secured Creditors

In the final installment of this series on the oil & gas industry, Orrick Restructuring Chair Ron D’Aversa and Restructuring Partner Doug Mintz survey the bankruptcy landscape for the oil & gas industry in the current low-price climate, outlining strategic reasons for bankruptcies, how unencumbered assets make for an atypical bankruptcy case, and how valuation and new borrower options could ultimately lead to adversarial cases.

Section 105(a) of the Bankruptcy Code provides that a bankruptcy court “may issue any order, process, or judgment that is necessary or appropriate to carry out the provisions of this title.” 11 U.S.C. § 105(a).  In the Caesars bankruptcy, the Seventh Circuit explored the breadth of a court’s rights to take action under this section.  The Seventh Circuit held that section 105(a) permits the Bankruptcy Court to issue an injunction with respect to litigation pending against the debtors’ non-debtor parent.

On December 22, New York AG Schneiderman announced that more than 3,000 consumers received partial compensation from funds stemming from a global settlement negotiated by AG Schneiderman and the CFPB.