Restructuring And Insolvency In Spain

When the new Insolvency Law came into force on September 1 2004, the framework for resolving business crises in Spain changed significantly – although the most frequently affected stakeholders (debtors, creditors, employees, judges and advisers) may not be fully aware of the magnitude of the change. The new law provides for the application of a single procedure in the event of insolvency, although the eventual outcome could be recovery or winding-up.

No official English translations of the Insolvency Law are currently available.

The new text seeks to overcome problems caused by archaism, imprecision and a lack of harmonisation. As stated in the preamble to the law, it clearly aims to support the future viability of businesses, as opposed to promoting lengthy and convoluted legal procedures that serve only to aggravate the situation and often leave liquidation as the only solution. Nonetheless, the law also protects creditors by providing a more professional, rapid and secure