Insolvency
Whether you are a creditor of a Spanish company that is going insolvent, or whether you own a Spanish company and need advice about how to enter insolvency, our team of lawyers can advise.
In Spain there are two main routes to insolvency:
1. Voluntary insolvency
This can be similar to an Individual Voluntary Arrangement (IVA) or a Members’ Voluntary Liquidation of a company in the UK.
If one of your debtors enters into this form of insolvency, it is advisable for you to have somebody to represent your interests during the creditors’ meetings in Spain (Concurso de Acreedores), and to liaise with any other creditors who are owed significant debts by the debtor, to ensure that a satisfactory agreement is reached, and that the liquidation process will be carried out in a way that is not detrimental to your interests.
We strongly recommend contacting the Spanish equivalent of the Official Receiver in the UK (Administrador del Concurso), in order to inform him/her that you are a creditor and to clarify the circumstances of your commercial relationship with the company or individual who is the subject of the insolvency proceedings. Whether or not you do this may make the difference between being able to recover something from the debtor and receiving nothing at all.
If you are considering whether or not to liquidate your own Spanish company, we can provide you with advice that will allow you to consider your options fully.
2. Compulsory insolvency
This is insolvency that has been requested by the creditors. We can provide you with advice about this process, and discuss whether it would be appropriate for an insolvency process to be instigated against one of your debtors.
Please contact us to find out how we can help you and your business.
