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    Restructuring - January 2014 - Instrument for Spain’s accession to the Convention on International Interests in Mobile Equipment signed in Cape Town on November 16, 2001
    2014-01-28

    Spain takes its first step towards securing international interests in mobile equipment.

    Filed under:
    Spain, Banking, Insolvency & Restructuring, Cuatrecasas
    Location:
    Spain
    Firm:
    Cuatrecasas
    Judgment No. 373/2012, of June 20, 2012, by the Supreme Court: compensation for enforcement of the financial guarantee under RDL 5/5005 once bankruptcy is declared
    2013-02-18

    Compensation of a debt made after the debtor’s bankruptcy declaration via the appropriation of securities pledged by virtue of a financial guarantee, is admitted.

    The validity of a transaction assessed as “compensation” that was carried out after the bankruptcy declaration of the company in debt was questioned before the Supreme Court. The credit entity applied the value obtained from the reimbursement of an investment fund that had been pledged to secure a credit policy to reduce the debt.

    Filed under:
    Spain, Insolvency & Restructuring, Litigation, Cuatrecasas, Bankruptcy, Debt
    Authors:
    Íñigo Rubio Lasarte
    Location:
    Spain
    Firm:
    Cuatrecasas
    Supreme Court ruling of July 10, 2014, No. 192/2014: credit arising from an interest swap is against the insolvency estate if the agreement is terminated in the interest of the insolvency
    2014-10-31

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

    Filed under:
    Spain, Derivatives, Insolvency & Restructuring, Litigation, Cuatrecasas
    Location:
    Spain
    Firm:
    Cuatrecasas
    Dissident syndicate lenders debate
    2014-05-22

    Spanish Royal Decree-Law 4/2014, passed on March 7 2014, has considerably changed the rules for the court-sanctioning of so-called Spanish schemes of arrangement. Amongst those changes, the reform has lowered the majorities required to achieve a Spanish scheme. Currently, a majority of at least 51% of the financial liabilities held by all creditors at the time of the refinancing agreement (acuerdo de refinanciación) approval, will suffice to request the insolvency judge to sanction the agreement, so it is considered ringfenced and protected from any challenge for rescission.

    Filed under:
    Spain, Banking, Insolvency & Restructuring, Cuatrecasas, Refinancing
    Location:
    Spain
    Firm:
    Cuatrecasas
    Restructuring - January 2014 - Act 26/2013, of December 27, 2013, on savings banks and banking foundations and Royal Decree Law 14/2013, of November 29, 2013 on urgent measures to adapt Spanish law to European Union regulations on supervision and solvency
    2014-01-28

    These regulations contain two provisions clarifying the regime applicable to SAREB (Company Managing the Assets derived from the Banking Restructuring) in its capacity as creditor in insolvency proceedings.

    Filed under:
    Spain, Banking, Insolvency & Restructuring, Cuatrecasas, Debtor
    Location:
    Spain
    Firm:
    Cuatrecasas
    Sap de Barcelona (secc. 15ª) de 14 de Septiembre 2012, nº 294/2012: prescripción de responsabilidad social de administradores con cargo caducado
    2013-02-12

    La caducidad del cargo de administrador se produce ope legis, sin necesidad de que acceda al Registro Mercantil ningún documento que lo constate. En estos casos, a diferencia del cese o la separación, el inicio del plazo de prescripción de la acción de responsabilidad contra el administrador comienza desde el momento en que deba considerarse caducado el cargo.

    Filed under:
    Spain, Insolvency & Restructuring, Litigation, Cuatrecasas
    Location:
    Spain
    Firm:
    Cuatrecasas
    Royal Decree-Law 11/2014, of September 5, on urgent measures in insolvency matters
    2014-10-31

    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.

    Filed under:
    Spain, Insolvency & Restructuring, Cuatrecasas
    Location:
    Spain
    Firm:
    Cuatrecasas
    Newsletter - Restructuring - May 2014 - Madrid Commercial Court No. 8 order of December 20, 2013: assignment of agreements linked to a production unit transferred in insolvency with no need for counterparties’ consent (“Blanco case”)
    2014-05-06

    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.

    Filed under:
    Spain, Insolvency & Restructuring, Litigation, Cuatrecasas, Liquidation
    Location:
    Spain
    Firm:
    Cuatrecasas
    Restructuring - January 2014 - Madrid Commercial Court number 2 rulings Nos. 190/2013, 191/2013, 192/2013 and 193/2013, of November 28, 2013: subordination of credits arising under interest rate hedging agreements
    2014-01-28

    Credits arising under interest rate swap agreements are (i) insolvency credits, as they do not fulfil the requisite of functional synallagma dependent on reciprocal obligations, and (ii) subordinate, because they involve payment of credits arising due to interest.

    Filed under:
    Spain, Insolvency & Restructuring, Litigation, Cuatrecasas, Interest
    Location:
    Spain
    Firm:
    Cuatrecasas
    Sts de 7 de diciembre de 2012, nº 723/2012: determinación del concepto de mala fe en caso de rescisión
    2013-02-12

    La apreciación de mala fe a efectos de subordinación del crédito de la contraparte a la restitución en caso de rescisión exige, además de conocer la situación de insolvencia o proximidad a la insolvencia del deudor, la concurrencia de un aspecto subjetivo (conciencia de que se afecta negativamente –perjuicio- a los demás acreedores) y de un aspecto objetivo (valorativo de la conducta del acreedor, consistente en que esta sea merecedora de la repulsa ética en el tráfico jurídico).

    Filed under:
    Spain, Insolvency & Restructuring, Cuatrecasas, Debtor
    Location:
    Spain
    Firm:
    Cuatrecasas

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