Further Amendments To Spanish Insolvency Act Now Effective

On September 5, 2014, Spain enacted urgent measures to facilitate restructurings and avoid the insolvency of companies that, under the previous regime, might have been forced to enter into an insolvency process ("RDl 11/2014"). RDl 11/2014 modifies several provisions of the Spanish Insolvency Act (the "Act"). The objective of the reform is to improve the legal framework that governs voluntary arrangements between creditors and the sale of distressed businesses outside of insolvency by removing obstacles that have previously impeded the successful reorganization of insolvent companies. In addition, RDl 11/2014 establishes rules to deal with the ongoing insolvency proceedings of certain concession holders in relation to Spain's toll highways (the "Concession Holders"). These measures aim to prevent the Concession Holders from being placed into liquidation.