Spain: New Restructuring Plans under the Transposition of the EU Directive

Spain published the transposition of the Directive on Preventive Restructuring and Insolvency in its Official Gazette on 6 September 2022.

The reform came into force on 26 September. Among many amendments, Spanish law now defines one only pre-insolvency tool: “planes de reestructuración” or restructuring plans. This tool is substituted for the two pre-insolvency tools available in Spain until now: (i) out-of-Court payment arrangements (with almost no practical use) and(ii) refinancing agreements (with limited effects, as they only allow for modification of the conditions of financial claims).