On 14 January 2022 the bill for the Amendment of the Spanish Insolvency Law that transposes Directive 2019/1023 was published in the Spanish Congress Official Gazette, setting out structural reforms in pre-insolvency and insolvency regulations that seek to achieve the following goals:
- with respect to viable companies facing financial difficulties, to facilitate debt restructurings that guarantee the rights of creditors and the continuity of the company through restructuring plans, which replace refinancing agreements and out-of-court payment agreements;
- with respect to non-viable companies, to extract the highest value of the assets to satisfy creditors following a defined ranking of claims; and
- with respect to natural persons facing insolvency, to offer good faith debtors a partial discharge of their liabilities and a second chance.
For further information on the main novelties in pre-insolvency regulation, please see our briefing: English version or Spanish version.
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