The Law for the amendment of the Spanish Insolvency Law that transposes Directive 2019/1023 (Directive on restructuring and insolvency) has been published in the Spanish Official Gazette on 6 September 2022. The Law will enter into force on 26 September 2022, excluding some articles.
This new Law sets 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.
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