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.

Royal Decree-Law 11/2014, of September 5, on urgent measures in insolvency matters, introduces important reforms into the Insolvency Act regarding composition agreements and insolvency liquidation to facilitate the continuity of financially viable companies.

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

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

The insolvency administration is authorized to sell the production unit of the insolvent company Antibióticos, S.A.U. to Black Toro Capital S.A.R.L.

It used to be the case that mortgage creditors could rest easy knowing they held a mortgage, and that they would be repaid with the proceeds of the sale of the mortgaged asset, even in the event of an insolvency.

A claim filed by insolvency practitioners requesting the termination of contract of payment in kind, which was entered into between a party under insolvency proceedings and a third party, centred on the giving of a slicer machine in consideration of debt; whether the credit of the defendant was qualified as subordinated as a result of damages resulting from the company’s inability to operation, and for violating the principle of equality among creditors.

The recent reform of the Bankruptcy Act (operated under RD 11/2014 dated September 5, 2014) intended to extend the bankruptcy agreement modifications in favor of the pre-insolvency restructuring and refinancing agreements which were introduced in March 2014.

The reform has a special provision for privileged creditors with warranties subject to specific valuation formulas, to be adjusted to the actual financial value of the guaranteed credit. Any portion of debts that exceed this value will not be considered as privileged, but will be ordinarily classified.

Análisis GA&P | Diciembre 2014 1 1. ¿Alcanza el efecto de paralización de ejecuciones sobre bienes necesarios del deudor que realiza la comunicación del artículo 5 bis de la Ley Concursal a la efectividad de una medida cautelar acordada contra el patrimonio del deudor? Respuesta: En principio, la mera efectividad de una medida cautelar no puede quedar comprendida en la paralización de las ejecuciones judiciales de bienes o derechos, pues única y exclusivamente está preordenada a garantizar la tutela de fondo que se pide.