SPAIN
As at 2 February 2018

By Adrián Thery
GARRIGUES, Madrid

* Please see the table at the end of the page for the main features of each proceeding mentionned in the table below:
 
Proceedings Elements of the Directive already included into the national legislation
'concurso'
 
- Protection for new financing, interim financing and other restructuring related transactions (Articles 16 and 17).
 
'procedimiento de homologación de acuerdos de refinanciación'
 
- Certain elements of the foreseen Restructuring Plan (content, adoption, confirmation, etc.).
 
'procedimiento de acuerdos extrajudiciales de pago'
 
- Second chance for entrepreneurs (articles 19 to 23).
'procedimiento de negociación para la consecución de acuerdos de refinanciación colectivos, acuerdos de refinanciación homologados y propuestas anticipadas de convenio'
 
 
- Debtor in possession (article 5.1): debtors accessing preventive restructuring procedures remain in control of their assets and the day-to-day operation of the business [except if  insolvency proceedings (‘concurso’) are opened].
 
-Stay of individual enforcement actions while negotiations (Article 6). Nevertheless, several points differ from the directive [ie: maximum stay of 4 months (art 6.6 allows 12 months), no insolvency proceeding  can be opened while the stay (art 7.2 allows the opening of the insolvency proceedings), etc.]    .
 
 
Proceedings Elements of the Directive which may be included into the national legislation
 
 
Legislative bodies are encouraging the Spanish Government to impulse a full transposition of the Directive 2012/20/EU and its reform as soon as possible.
 'procedimiento de homologación de acuerdos de refinanciación'
 
Scholars have debated on the convenience of a global modification of the proceeding if the Directive is approved, given the current differences with many elements of the Directive which does not exist in the national legislation: existence of early warning mechanisms (art. 3); possibility to extend the stay on enforcements (art. 6.5) or to raise that stay in certain cases (arts. 6.8 and 6.9); need of the approval of the restructuring plan by different categories of creditors, being such classification on categories subject to judicial challenge (art. 9); introduction of the concept of the ‘best interest’ test [art. 10.2 b)]; possibility of appeal (art. 15), etc.   
'procedimiento de acuerdos extrajudiciales de pago'
 
- Some specifications included in articles 19 to 23 (related to a second chance for entrepreneurs) are being debated by the legislative bodies: ie discharge period (article 20).


 
Proceedings Outcomes
'concurso'
 
 
3 options: 
  • Creditors’ arrangement
  • Total or partial liquidation of the company’s assets or transmission of business units. 
  • Conclusion of the insolvency proceedings due to the insufficiency of the debtor’s estate.
'procedimiento de homologación de acuerdos de refinanciación'
 
Homologation by the court of a negotiated refinancing agreement, which entails a protective shield against claw-back actions
  • possibility to extend the effects of the agreement to the dissenting creditors 
'procedimiento de acuerdos extrajudiciales de pago'
 
 
- Creditors’ arrangement:
  •  Stay (max 10 years)
  • -Write-off
  • - Transfer of assets and rights to creditors in payment or for payment of all or part of their loans.
  • - Debts’ conversion into equity, participating loans (PPL’s), convertible bonds, subordinated loans, etc.
- Opening of the concurso
'procedimiento de negociación pública para la consecución de acuerdos de refinanciación colectivos, acuerdos de refinanciación homologados y propuestas anticipadas de convenio'
 
4 months protection (moratorium) from enforcement proceedings and creditors insolvency petitions. Possible outcomes:
-  creditors arrangement 
- obligation to petition for ‘concurso de acreedores’ after the 4 months period, unless the debtor is no longer in an insolvency situation