SPAIN’S NEW RESTRUCTURING PLANS

The reform of Spanish insolvency law transposing Directive (EU) 2019/1023 came into force in autumn 2022. The reform is a major reworking of our insolvency system but the main changes are undoubtedly to be found in the new pre-insolvency framework. Unlike other EU member states Spain has opted for a far-reaching and transformative reform of the pre-insolvency system that is based around the “restructuring plan”. This new instrument introduces greater flexibility and more closely resembles the much-desired US and UK restructuring schemes. The reform brings many positive developments that will make it possible to deal more efficiently with corporate financial crises; some of them as explained below represent a paradigm shift for creditors who from now on will benefit from a broader and more agile framework and greater power to design negotiate and approve a debtor’s restructuring.

OVERVIEW OF...