Ceca Magán Abogados highlights main novelties of new Insolvency Law

Yesterday, September 1, the consolidated text of the Insolvency Law came into force. Ceca Magán Abogados Insolvency and Restructuring partner Manuela Serrano summarizes for Iberian Lawyer the most important novelties to be taken into account:

• Refinancing agreements: The concept of "disproportionate sacrifice" is regulated, and it is established that the order that approves them may cancel liens and order the conclusion of executions of creditors affected by the agreement.
• Out of court payment agreements: Liabilities without collateral shall be considered non-computable, as well as loans with collateral provided that they have accepted the proposed agreement.
• Consecutive Insolvency proceeding: As a novelty, the consolidated text understands as consecutive Insolvency proceeding not only that which starts after an out-of-court payment agreement, but also the one that begins after a refinancing agreement, with common and specific regulations for each case.
• Pre-Insolvency period: Necessary bankruptcy proceedings may be filed and will be processed once three months have elapsed since the filing of such communication, in case the debtor is a legal entity, and two if it is a natural person.

For more information on Creditors agreement, Productive units’ sales, Seizures and executions, among other issues, see the full article.