Restructuring and insolvency—Spain—Q&A guide

The following Restructuring & Insolvency practice note provides comprehensive and up to date legal information covering:

  • Restructuring and insolvency—Spain—Q&A guide
  • 1. What main legislation is applicable to insolvencies and reorganisations?
  • 2. What entities are excluded from customary insolvency or reorganisation proceedings and what legislation applies to them? What assets are excluded or exempt from claims of creditors?
  • 3. What procedures are followed in the insolvency of a government-owned enterprise? What remedies do creditors of insolvent public enterprises have?
  • 4. Has your country enacted legislation to deal with the financial difficulties of institutions that are considered ‘too big to fail’?
  • 5. What courts are involved? What are the rights of appeal from court orders? Does an appellant have an automatic right of appeal or must it obtain permission? Is there a requirement to post security to proceed with an appeal?
  • 6. What are the requirements for a debtor commencing a voluntary liquidation case and what are the effects?
  • 7. What are the requirements for a debtor commencing a voluntary reorganisation and what are the effects?
  • 8. How are creditors classified for purposes of a reorganisation plan and how is the plan approved? Can a reorganisation plan release non-debtor parties from liability and, if so, in what circumstances?
  • 9. What are the requirements for creditors placing a debtor into involuntary liquidation and what are the effects? Once the proceeding is opened, are there material differences to proceedings opened voluntarily?
  • More...

Restructuring and insolvency—Spain—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to restructuring and insolvency in Spain published as part of the Lexology Getting the Deal Through series by Law Business Research (published: June 2021).

Authors: Freshfields Bruckhaus Deringer—Silvia Angós

1. What main legislation is applicable to insolvencies and reorganisations?

The Spanish insolvency regime is mainly governed by the Recast Insolvency Act (Royal Legislative Decree 1/2020, of 5 May) in force as from 1 September 2020. The Recast Insolvency Act is a consolidated text of the Spanish Insolvency Act (Law 22/2003) that includes all the amendments this Act has been subject to since its publication in 2003. The Spanish government has approved this recasting in order not only to incorporate all these amendments but also to clarify and harmonise the Spanish Insolvency Act, and the result is a new text with an entirely different structure that triples the number of articles.

The Recast Insolvency Act establishes a single insolvency proceeding applicable to both individuals and corporates, providing for the possibility of a settlement agreement between the debtor and its creditors and, if agreement is not reached, for the liquidation of the debtor's assets towards the payment of creditors.

In addition to the Recast Insolvency Act, the following pieces of legislation, among others, are relevant in the context of an insolvency:

  1. the Civil Procedure Act;

  2. the Securities Market Act;

  3. the

Popular documents