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).

A credit institution appealed the ruling that approved the agreement claiming that the creditors meeting had allowed the presence and vote by a city council that, in its opinion, did not have such right because it was the holder of 100% of the share capital of the insolvent party.

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 Court of Appeal of Porto of October 8, 2015 

Culpable insolvency – Duration of disqualification of the insolvent party

The Supreme Court confirmed the lower-court judgments that had rescinded the payments made to the managing director through remuneration, as the bylaw requisite to create the right to receive it had not been met, as well as payments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.

Judgement No. 362/2015 - Official Gazette No. 186/2015, Series II of 09/23/2015

The Constitutional Court ruled unconstitutional the provision of Article 100 of the Insolvency and Corporate Recovery Code, approved by Decree-Law No. 53/2004, of March 18, if interpreted as the declaration of insolvency provided therein suspends the limitation deadline of tax debts attributable to the responsible subsidiary responsible person according to the tax procedure.

Judgment of the Supreme Court of 08/10/2015

ACT 42/2015 AMENDS ARTICLE 1964 OF THE CIVIL CODE (STATUTE OF LIMITATIONS ON ACTIONS)

DECISION OF THE GENERAL DIRECTORATE ON REGISTRIES AND NOTARIAL ACTIVITIES DATED OCTOBER 6, 2015: NO PUBLIC DEED REQUIREMENT FOR REGISTERING PROPERTY JUDICIALLY AWARDED IN AN INSOLVENCY PROCEEDING

BARCELONA PROVINCIAL COURT (DIVISION 15) RULING OF JUNE 31. 2015, NO. 170/2015: CHANGE IN THE RULE FOR DETERMINING THE EXISTENCE OF A GROUP UNDER THE INSOLVENCY ACT

In this judgment, the Provincial Court of Barcelona modified its previous position (despite a degree of dissent) on the concept of group for insolvency proceeding purposes.

DOING BUSINESS IN PORTUGAL A legal and tax perspective This guide provides general information to investors intending to operate in Portugal on legal issues on which they may need advice. It is not intended, and cannot be considered, as a comprehensive and detailed analysis of Portuguese law or, under any circumstances, as legal advice from Cuatrecasas, Gonçalves Pereira. This guide was drafted on the basis of information available as of October, 2015. Cuatrecasas, Gonçalves Pereira is under no obligation and assumes no responsibility to update this information. All rights reserved.