The remaining credit after the cancelation of its guarantee through an assignment in lieu of payment (dación en pago) in favor of a creditor with a lower-ranking guarantee is an ordinary credit and cannot be subject to a new classification

Financial institutions are not de facto directors of the insolvent company because they do not significantly affect the performance of the insolvent company’s activity, but only ensure that  certain costs do not affect the repayment of their loan.

In 2011, the Spanish legislator introduced the court-sanctioned refinancing agreement (‘Spanish Scheme’) in the Spanish insolvency system. While the introduction of the Spanish Scheme has been praised for providing new tools for debtors to reorganise out-of-court while addressing the collective action problem, certain of its provisions have made this instrument too rigid and, thus, ineffective for tackling Spanish restructurings.

This website uses its own cookies and those of third parties to analyze the use of this site to improve its contents and your user experience. If you continue to browse, we understand you accept their use. You can change your configuration or obtain further information here.

Any restitution and compensation agreed by the judge when the  swap agreement is terminate

Judgment of the Supreme Court of Justice of 20-03-2014 Standardization of Jurisprudence – Insolvency Proceedings  – Right of  Retention

Judgment of the Court of Appeal of Porto of 05-12-2013

Contract Termination in Favor of the Insolvency Assets – Conditional Termination – Requirements – Bad Faith – Judicial Presumption

CHANGES TO THE INSOLVENCY AND RESTRUCTURING COMPANIES CODE

The changes to the Insolvency and Restructuring Companies Code, as established in Decree-Law No. 79/2017 of June 30, entered into force on July 1 2017.

Noteworthy changes

A. Special revitalization proceeding (Processo Especial de Revitalizao "PER")

1. This proceeding is now only available to companies.

2. Requirements for this proceeding were revised.

a. For every company:

When an composition agreement is terminated due to  non-fulfillment and the disappearance is declared of its effects over the credits, the affected credits will be recognized for their original amount, and the definitive texts will include the fraction pending of payment, even if the resulting amount after applying the debt relief agreed has been paid in full

The court ruled to allow the sale of the production unit with assignment to the acquirer of the agreements involving the insolvent companies affected by the transfer of the production unit and necessary for its continuance.