Bankruptcy proceedings and their possible effects on prior leveraged buy-out operations
In recent years so-called “leveraged buy-outs” (LBO) have been very frequent in Spain. These operations are characterised by being acquisitions of a majority percentage of the share capital of a target company, this acquisition being financed via loans obtained from a third party which are guaranteed with the assets of the target company itself or are repaid by being charged to corporate assets and cash flows expected from the same.
