The matter subject to this analysis is decision taken by a Bankruptcy Administration dealing with three companies of the same company group which are involved in a bankruptcy proceeding. Given the situation and in response of the confusing information of assets, the Administration under discussion decided to gather the three companies joining all their creditors in a sole debt pooling and besides, joining all the rights and assets of the three companies.  

ECJ, Sixth Chamber, Judgment of 28 January 2015.

The judgment resolves the prejudicial question submitted by a Mercantile Court concerning the maintenance of workers’ rights in the event of the transfer of companies or part of them, and branches of business.

The question of which law is applicable to the insolvency of a party in an international commercial arbitration is a topical issue, particularly in the current financial crisis.Whether it be a desire to initiate arbitration; an arbitration that is already underway or where an award is to be enforced, the situation may arise where one party is, or will be, declared insolvent.

The Royal Decree-Law 1/2015 dated February 27, 2015 (the “RDL”) seeks to implement urgent measures to, among other things, reduce individual debtors’ financial burden.

Following the latest reform of the Bankruptcy Act, the Spanish Tax Authorities have established a mechanism to ensure the collection of the applicable VAT in the acquisition of property from companies declared bankrupt.

Until 1 January 2012, Article 84 of the VAT Act 37/1992, when regulating the reversal cases of the taxpayer liable for this tax, no reference is made to companies declared bankrupt and the cases of their goods being acquired. However, this situation has changed since 1 January 2012.

At the end of 2021, the Spanish government approved draft reforms of the Spanish insolvency laws that transposes Directive (EU) 2019/1023 of 20 June 2019 on preventive restructuring frameworks into Spanish law.

The reform will bring about a comprehensive change in insolvency proceedings in Spain. So what are these changes and what effect will these have in practice?

Restructuring Plans

The EU directive 2012/30/EU proposed in November 2016 (“Proposed Directive”) aims to avoid the adverse effects of insolvency on companies through a more flexible regime of restructuring.

Royal Decree-Act 11/2017 of 23 June, on urgent measures for financial matters

BARCELONA PROVINCIAL COURT (DIVISION 15)  RULING  OF APRIL  3,  2014, NO.
116/2014, AND  LA CORUNA PROVINCIAL COURT (DIVISION 4) RULING OF APRIL  22, 
2014, NO. 118/2014: ARTICLE 90.1.6 OF THE INSOLVENCY ACT REFERS TO THE PLEDGE SECURING FUTURE CREDITS

Two new decisions on article 90.1.6 of the Insolvency Act coincide in stating that the last  point of this precept refers to the pledge securing future credits, and not to the pledge over future credit rights.

Financial entities. Royal Decree-Law 14/2013, of November 29, on urgent measures to adapt Spanish law to European Union law on the supervision and solvency of financial entities. (BOE 287, November 30, 2013)

European Union law on the supervision and solvency of financial entities (Basel III) has been incorporated into Spanish law.