Corporate Law, Banking and Refinancing in Spain

The Insolvency Law, 22/2003, July 9th, establishes that may be in insolvency predicament the debtor who can not afford often its necessary obligations. The insolvency declaration should really be requested within the two months subsequent to the date in which the debtor has recognized its insolvency predicament, supposing that it exists when several of the causes of your required insolvency declaration come about:
1. Common cessation of your existing payment obligations of your debtor.obat maag tradisional
two. The existence of seizes for pending executions that impact within a general way the debtor's assets.
3. The concealment or the speedy or the ruinous liquidation of your debtor's assets.
4. The general breach of several of the following obligations: payment of tax liabilities necessary the three months just before the insolvency declaration request; payment of your Social Safety fees, along with other joint collection ideas throughout the exact same period; payment of salaries, severance pays along with other salaries derived from the labor relations corresponding the three final monthly payments.obat maag tradisional mt33

Regardless of the eventual obligatory nature of your insolvency declaration request, in some instances it could be the only solution as a way to protect the viability of your corporation, paralyzing the executions along with other proceedings. This situation is definitely the most suitable as a way to acquire an agreement using the creditors in favorable conditions, exclusive court proceedings, interest accruals, etc.

Regardless of what has been aforementioned, what exactly is specific is the fact that corporations with specific viability in financial terms don't request the declaration of insolvency predicament if they can keep away from it and that the vast majority of bankrupt corporations end up in liquidation.

This can be as a result of the existence of other negative consequences collateral to the insolvency proceedings:

- Limitation of debtor's critical rights.
- Lien of your manager's assets.
- Intervention or substitution of your debtor's faculties upon his assets by the insolvency administrator.
- Inefficiency of a management under intervention.
- Superb repercussion on the annual turnover, loss of reputation and solvency and amazing difficulties for the collection of client's debts.
- Financial collapse as a result of the loss of your financing of your circulating.
- Piece of qualification and eventual managers' responsibility.obat maag tradisional mt34

The effectiveness and also the true running of your Insolvency Law has frequently been questioned by the legal practitioners and these impacted by the insolvency declaration, no matter whether debtors or creditors, and also the two critical reforms occurred over the Law bring specific evidence of this predicament, whose objective has been making formulas as a way to keep away from the insolvency declaration established within the Law.

The insolvency proceedings, in most instances, has been proved to become the liquidation procedure for an unviable corporation, in which the assets won't reach the liabilities in such a way that when the sufficient legal proceedings are followed, the corporation could be liquidated within a public and sorted way.

Respecting the guidelines and regulations and also the legal obligations and accomplishing the deadlines established within the mercantile guidelines and regulations, analyzing every single case, the applicable alternatives are:

Options and mechanisms to avoid the insolvency declaration.

To be able to keep away from the liquidation causes, it can be conceivable to introduce asset rebalancing measures; escalating or decreasing share capital, structural changes (mergers, investments), legally allowed accounting adjustments, etc.

Debt renegotiation with suppliers by signifies of off-court release and postponement agreements
Request for postponement using the Treasury and Social Safety.
Restructuring the monetary liability. Refinancing to adjust payments to the cash offered.
Refinancing determined by the reform of your Insolvency Law.