Supreme Administrative

Court Judgement of October 12, 2016

Case no. 0797/15

In this Judgment, the Supreme Administrative Court concluded that expenses related to employees, recorded as remuneration, salaries or wages, relevant to the limit of 15% foreseen for acceptance of the expenses with social benefits referred to in Article 43.2 of the CIT Code, are not limited to those that were subject to mandatory Social Security contributions.

South Central Administrative Court

Judgement of October 13, 2016

In judgment 297/2016 of September 22, 2016, by Commercial Court No. 6 of Madrid, the court rejects the appeal filed by a dissenting entity affected by a court-sanctioned refinancing agreement. The appeal argued the existence of a disproportionate sacrifice due to the standstill of the notarial enforcement of a pledge on shares already executed.

In its judgment 500/2016 of July 19, 2016, the Supreme Court interprets article 62.4 of the Insolvency Act, regulating the effects of contract resolution during insolvency:

If an agency agreement is resolved due to the agent being declared insolvent, the business owner must compensate the agent for clientele if the requirements under the Agency Act are met (the agent brought new clients or clearly increased transactions with existing clients, and the previous activity is still beneficial for the business owner). 

In its writ dated February 2, 2016, the First Instance Civil Court No. 38 of Barcelona raised a preliminary issue to the Court of Justice of the European Union. In that writ, it requested the EU court to determine whether the business practice of assigning or buying credits without offering consumers the possibility to settle the debt by paying the assignee the outstanding amount is in line with EU law.

Decision clarifies standards for priority treatment under section 507(a)(7); important implications in retail bankruptcy cases for debtors, creditors - and consumers

Overview

En los años de mayor crisis económica se dispararon las compraventas de unidades productivas autónomas en el marco de procedimientos concursales. La Ley Concursal regulaba estas compraventas permitiendo a los adjudicatarios reflotar un negocio minorando las cargas acumuladas hasta el momento del concurso.Uno de los debates en estas situaciones es el alcance de la responsabilidad de la empresa adjudicataria sobre las obligaciones laborales de los trabajadores afectos a la unidad productiva autónoma.

1.                 BACKGROUND

Judgment of the Court of Appeal of Porto of February 15, 2016

On March 2, 2016, Sports Authority, Inc. (“Sports Authority”) and six of its affiliates filed for Chapter 11 bankruptcy in Delaware.  The filing will significantly impact Sports Authority’s landlords and trade creditors.  In a press release, Sports Authority stated that it intends to close or sell approximately 140 locations and two distribution centers in the coming months.  The company is also seeking $595 million in post-bankruptcy financing to continue operations.  Sports Authority is a sporting goods retailer with 463 locations in 41 states and Puerto Rico.