The Insolvency Law of Spain protects creditors in case of misconduct or negligence by directors (“administradores”) of a company in insolvency; such a disposition is specifically useful as it is of utmost importance for there to be confidence in the protection that the economic legal framework offers to creditors.
We are currently in an economic stage of globalization and the internationalization of trade relations. Within this period, the increasing complexity of transactions and the current economic crisis are contributing factors to a greater proliferation of international commercial disputes.
Asset seizure, or attachment, is a process that enables creditors to collect from delinquent debtors by looking to their assets, including property, goods, and/or earnings.
There are two categories of wills under Spanish law: common and special. Special wills are military, maritime, and ones executed in a foreign country, while common wills are open, closed, or holographic. This last type is the basis for this article, yet before expounding on it, a brief sketch of the other two types of common wills is useful. This article will not discuss special wills.
With this short brochure we intend to introduce readers in the Spanish real estate market, so they become able to take the opportunities that are awaiting them in Spain.
In Spain, like in many other countries of the European Union, the party autonomy, which ensures the contractual freedom of the parties is one of the most basic principles in respect to trade agreements. Aside of this principle exist several other mandatory legislations, which can not be modified by the contractual parties and unfold effects in prevalence. Especially trade agreements are interpreted and construed by these mandatory legislations and therefore shall receive consideration by the parties to a contract.
This article explains some of the most relevant aspects of insolvency proceedings and debt collection. From a practical point of view, these concepts must be valued considering the possibility that an economic actor may have to participate in an insolvency proceeding when such economic actor is demanded to participate by a creditor, or when an economic actor voluntarily participates in such a proceeding as a debtor.
The principal Spanish rules relating to insolvencies are found in the relatively recent Insolvency Law 22/2003 of the 9th of July, approved in a moment of economic prosperity. This law has been the object of a recent reform, by way of the Royal Decree Law 3/2009 of the 27th of March, driven in part by the current global economic crisis. This law has been affected by the current global economic crisis like the Spanish economy has been affected.
To collect outstanding debts, it is always advisable to reach an out-of-court settlement because lawsuits in Spain can be very lengthy, arduous and costly.
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.
