Special Situations, Restructuring and Insolvency

We also advise on insolvency proceedings, including:

• Pre-insolvency advice.
• Directors’ liability.
• Preparation of voluntary arrangements.
• Advice on administrative receiverships.
• Collective redundancies.
• Advice during liquidation, among others.

A company’s pre-insolvency or insolvency situation initiates a very complex and delicate legal process that requires the close collaboration of professionals from different and complementary areas of practice, such as banking and finance/restructuring, real estate, labour and tax.

Banking & Finance/Restructuring:

We regularly advise on debt restructuring transactions (both insolvency and pre-insolvency), project finance, banking guarantees and financing of acquisitions, involving both national and cross-border transactions), including the drafting and negotiation of refinancing agreements, subsequently approved, or subject to be approved, by the courts and financing agreements of new money by financial institutions or private equity or debt funds.

Real Estate:

We have a consolidated real estate practice ranging from the advice to real estate companies, shopping centres and hotel chains, to the acquisition of plots and its subsequent development, including the acquisition of assets within insolvency proceedings and the renegotiation of leases in favour of companies in pre-insolvency situation.

Labour:

We advise on substantial modifications of employment conditions, on temporary layoff procedures (ERTEs) and collective redundancy plans, participating in all phases of the proceedings, including any negotiation with the employees’ legal representatives.

Tax:

The relation of the company (and its Directors) with the Spanish Tax Authorities in pre-insolvency and insolvency scenarios is a key matter. The Spanish Tax Authorities are not just mere creditors and their tax credits enjoy special privileges. When a company is in financial distress there are many incidents arising from this situation, particularly regarding Spanish VAT and tax collection procedures. We should also be especially cautious regarding the potential tax liability of the Directors of a company. Our Tax Department has extensive experience in all the tax issues arising from this kind of situations.