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:

Financing and Restructuring July 2017 Cases and transactions Dual financing to build waste management center FLUIDRA: Issuance of promissory notes on MARF Agile process to sell production unit in insolvency proceedings Legislation New rules on prospectuses Regulation coming into force on insolvency proceedings and forms Case law Indirect shareholding and subordination of credit Pledging of VAT credits resistant to insolvency proceedings Concept of group in insolvency proceedings Individual legal standing in syndicated loans Insolvency categorization of loans secured with pledge of credit ri

Comsa: debt restructuring PSA Financial Services Spain: establishing an asset-backed securities fund Emesa: subscribing a collar equity swap Proposal for an EU Directive on restructuring and second chance Exit right due to no dividend distribution: end of the suspension of art.

If an agency agreement is resolved due to the agent being declared insolvent, the business owner must compensate the agent for clientele if the requirements under the Agency Act are met (the agent brought new clients or clearly increased transactions with existing clients, and the previous activity is still beneficial for the business owner). 

In its writ dated February 2, 2016, the First Instance Civil Court No. 38 of Barcelona raised a preliminary issue to the Court of Justice of the European Union. In that writ, it requested the EU court to determine whether the business practice of assigning or buying credits without offering consumers the possibility to settle the debt by paying the assignee the outstanding amount is in line with EU law.

In its judgment 500/2016 of July 19, 2016, the Supreme Court interprets article 62.4 of the Insolvency Act, regulating the effects of contract resolution during insolvency:

In judgment 297/2016 of September 22, 2016, by Commercial Court No. 6 of Madrid, the court rejects the appeal filed by a dissenting entity affected by a court-sanctioned refinancing agreement. The appeal argued the existence of a disproportionate sacrifice due to the standstill of the notarial enforcement of a pledge on shares already executed.

En los años de mayor crisis económica se dispararon las compraventas de unidades productivas autónomas en el marco de procedimientos concursales. La Ley Concursal regulaba estas compraventas permitiendo a los adjudicatarios reflotar un negocio minorando las cargas acumuladas hasta el momento del concurso.Uno de los debates en estas situaciones es el alcance de la responsabilidad de la empresa adjudicataria sobre las obligaciones laborales de los trabajadores afectos a la unidad productiva autónoma.

Recent developments

Recent Developments