This coming Monday, September 26, 2022, the new Bankruptcy Law will come into force, which transposes the Directive (EU) 2019/1013 of the European Parliament and of the Council, of June 20, 2019. The main objective of the new regulation is to resolve the current limitations of the Spanish insolvency system.
Among the main novelties we highlight:
I.) The configuration of the Restructuring Plan, which eliminates the current out-of-court and refinancing agreements. This mechanism will allow the creation of a payment plan in the face of the “probability of insolvency”, – a new term that will allow estimating insolvency in the obligations that expire in the next 2 years -, which will have to be formalized in a public instrument or through judicial approval.
The Restructuring Plan contemplates the creation of the Restructuring Expert, who may intervene when requested by the debtor or the creditors that represent more than 50% of the liabilities.
II.) The creation of a Special Procedure for Micro-enterprises, endowed with greater simplicity. Micro-enterprises will be considered those with less than 10 workers and an annual turnover of less than 700,000 euros or a liability of less than 350,000 euros. This process groups the pre-bankruptcy and bankruptcy procedures, so that micro-enterprises will not be included in the restructuring plan.
In this process, liquidation or the continuation plan may be chosen, similar to the current agreement, with a relevant novelty: creditors who do not vote against the proposal will be understood to vote in favor of the plan.
The special process for micro-enterprises provides for an online settlement and payment plan calculation platform, among other mechanisms, so this novelty will not come into force this Monday, but at least until January 1, 2023.
III.) The new regulation also modifies the Express Bankruptcy, which provides for the appeal of creditors and new procedural phases.
IV.) The powers of creditors have also been modified, expanding the powers of intervention in bankruptcy proceedings.
The legislative novelties are an interpretation made by the addwill team, with whom you can contact to advise you on any exposed measure, and in general, on any matter related to bankruptcy regulations.
At addwill, we are at your disposal if you wish to obtain further information and advice in this regard from our expert professionals