Restructuring and insolvency

Reform of the Spanish Insolvency Act has shifted the centre of gravity of this field: the principal instrument is no longer formal insolvency but the restructuring plan, and it works better the earlier it is triggered. The law allows intervention in a state of likely insolvency — that is, before payments have actually stopped.

That is the moment at which a company can be saved. Once insolvency is obvious and employment and tax liabilities have built up, the room for manoeuvre is far narrower.

Diagnosis and decision

The first task is to establish, with figures, where the company actually stands and what obligations that situation has triggered. Directors have specific duties and strict deadlines; failing to meet them transfers the problem to their personal assets through a finding of culpable insolvency or liability for company debts.

Negotiation and restructuring plans

We support negotiations with banks, strategic suppliers and public creditors, and structure the restructuring plan with the aim of binding dissenting creditors through court approval once the necessary majorities are reached.

Insolvency and culpability

Where insolvency proceedings are unavoidable, we prepare them to be orderly: complete documentation, a proposal either to continue trading or to liquidate through the sale of the business as a going concern, and an anticipated defence of the board’s conduct in the culpability stage.

Second chance

For sole traders, the self-employed and shareholders who have guaranteed their company, the discharge of unsatisfied debt allows liabilities to be cancelled and a fresh start. We assess whether the requirements are met and handle the procedure.