Se ha publicado en el BOE un nuevo Real Decreto-ley (el 25/2020), con medidas urgentes destinadas a preservar el tejido productivo y apoyar la reactivación económica y el empleo.

Destacamos a continuación las principales novedades:

1. Medidas de apoyo a la inversión y a la solvencia

Se aprueba una nueva línea de avales ICO por importe de hasta un máximo de 40.000 millones de euros para

financiar inversiones productivas (a diferencia de las anteriores líneas, que estaban destinadas solucionar

problemas de liquidez).

On 26 June 2020, the Corporate Insolvency and Governance Act (the “CIGA”) entered into force. We summarised the key terms of the proposed legislation in our previous client alert (link to previous alert). 

The Spanish government has announced emergency measures aimed at protecting businesses and supporting economic recovery and employment in the country.

We highlight the main measures in the decree (RDL 25/2020) below:

1. Support for investment and solvency

 State-backed guarantees for new investments

A further €40 billion of guarantees from Spain’s financial agency (ICO) are made available to finance productive

investment (unlike previous guarantees, aimed to be liquidity buffers).

While the overall economic damage resulting from COVID-19 remains to be seen, one thing is certain – the pandemic has dealt a devastating blow to the global economy. Many businesses, some of which were relatively healthy pre-COVID-19, now find themselves in a liquidity crunch and at risk of insolvency.

For companies in The Bahamas facing financial distress, it is important for directors to be aware of their duties and the tools available to them, while taking steps to stabilise the company’s business.

Questions and answers on the effect of the part A1 moratorium to be introduced by the Corporate Insolvency and Governance Act 2020 from a Lender's perspective.

The Corporate Insolvency and Governance Act 2020 (CIGA) was enacted on 26 June 2020 and includes measures both as a response to COVID-19, which apply temporarily, and measures which apply permanently, part of a long-planned package of insolvency reform measures.

As a corporate officer or director, the only way to take a bad situation like bankruptcy and make it worse is to be confronted with personal liability for the company’s debts, when you could have taken simple steps to position yourself better. Senior management must pay close attention to specific responsibilities and the resulting potential for liability when insolvency is on the horizon. This is especially important during the COVID-19 pandemic when bankruptcies are on the rise.

Hoard Cash

For many years, Machiavelli Ristorante Italiano in the Sydney CBD was the place for the business and political elite to be seen and to talk business.

More recently, the Supreme Court of New South Wales was the place for the new owners of the Machiavelli Ristorante to be seen to litigate their partnership disputes.

The case is In the matter of Bicher & Son Pty Ltd [2020] NSWSC 711 (9 June 2020) (Black J).

The rapidly changing impact of COVID-19 on companies and the wider economy presents directors with the unenviable task of balancing the immediate need to secure the survival of their company against the longer-term implications for their stakeholders. In March, the UK Government announced that wrongful trading measures would be temporarily suspended to ease this pressure. The suspension measures are included in the Corporate Insolvency and Governance Act 2020, which introduces both temporary measures, such as this, and permanent and significant changes to UK insolvency law.

On 15 June 2020, the Monetary Authority of Singapore (MAS) poll of 23 economists and analysts indicates that Singapore’s economy will likely shrink by 11.8% in Q2 2020 on a year-on-year basis. Overall, GDP is estimated to contract 5.8% in 2020. COVID-19 and trade tensions have upended the economy and put many corporations in survival mode. 3,800 companies closed down in April 2020 alone, a sign of the severe strain on the Singapore economy wrought by the virus. Hard times however, do not mean directors should easily disregard their duties and legal obligations to the company as a whole.

Hogan Lovells Publications | 06 July 2020

Contracts and Insolvency – a transformational change

New statutory provisions retrospectively change the way many existing and future contracts work. Businesses urgently need to look afresh not just at supply arrangements but also many other significant transactions of which the supply of goods or services forms part.