Claims secured with an in rem guarantee continue to accrue default interest charged to the encumbered asset and are classified as privileged.
The Madrid Provincial Court applied the doctrine of the Supreme Court judgment of April 30, 2014, no. 100/20148, and declared the rescission of a personal guarantee granted by the insolvent company to secure the loan granted by a credit institution to a related company.
The insolvency system established under Royal Decree-Law 5/2005 applies to interest rate swap agreements if they are subject to a contractual compensation agreement, even when there is only a financial transaction under that agreement. Any claims arising from these agreements that might have accrued after the declaration of insolvency will be charged against the insolvency estate.
The Council of State has issued a report regarding the request for a declaration of the administration’s financial liability made by a party expropriated for fair value in legal proceedings in view of the declaration of insolvency of the concessionaire benefitting from the expropriation.
The Supreme Court confirmed the lower-court judgments that had rescinded the payments made to the managing director through remuneration, as the bylaw requisite to create the right to receive it had not been met, as well as payments made to shareholders through dividends, differentiating between the resolution of the meeting to distribute dividends and the payment of these dividends.
At the end of October 2014, as insolvency administrators of Establiments Miró, we carried out the sale of the insolvent company’s production unit to the Swiss fund Springwater Capital LLC.
This transaction was successful, resulting in maintaining 476 jobs, preserving 67 stores, and bringing income of €4,505,937 for the insolvency (€3,000,000 for the price and €1,505,937 for recovering the amount of the bonds to be substituted by the purchaser).
The Supreme Court repeated its criterion on classifying as insolvency claims any leasing installments arising after the declaration of insolvency, and interpreted the amendment introduced into article 61.2 of the Insolvency Act (“IA”) by the 2011 reform.
Decision of the Supreme Court of Justice, No 117-B/1999.P1.S1., of 2015-01-08 Transforming companies – Partner – Resignation – Liquidation of the company – Judicial ruling – Feasibility – Decision
In this decision, the Supreme Court of Justice (“STJ”) was asked to give ruling on the feasibility of the decision that was presented as an enforceable title, which was delivered within a special procedure of liquidation of an equity interest presented by a creditor partner against a debtor company.
Judgment of the Supreme Court of Justice No 15/2014, published in Diário da República (Portuguese official gazette) No 24 of 2014-12-22
Insolvency – Insolvency Administrator – Presumption of bad faith
Portaria (Ordinance) No 261/2014 - Diário da República (Portuguese official gazette) No 242/2014, Series I of 2014-12-16
Amending for the first time the Regulation of the Local Support and Micro-company Incentive Scheme.
Reviewing the legal framework of urban lease.