Effects on Spanish insolvency proceedings
By Leticia Lozano, Dr. Frühbeck Abogados, S.L.P.
Once an insolvency proceeding has been published in the Spanish State Official Gazette (Boletín Oficial del Estado), creditors are granted one month to file their respective claim.
According to the Spanish Insolvency Law, the claims are classified as follows: preferential credits (wage and tax obligations, mortgages), subordinated credits (interests, fines, claims that have been presented out of time) and ordinary credits (all other claims).
It is worth stressing that payment of the claims is made in a strict order as set out in Spanish Insolvency Law, complying with the preferential position that these may have. The first claims to be paid are claims against the estate, followed by insolvency claims according to their classification (preferential – ordinary – subordinated), which are paid from the active mass of the insolvency proceeding. In the event that the claims cannot be entirely settled due to a lack of liquidity, the insolvency administrator will make the payment of the claims on a pro rata basis.
Once an insolvency proceeding has been declared, compensation of the insolvency receivables against debts of the insolvency proceeding is prohibited, since parity of treatment has to be ensured on equal terms for all the creditors (par conditio creditorum), i.e. the creditor cannot recover the delivered goods that have not been paid for in order to have his claim met, since this action would go against the active mass and the purpose of the in solvency proceeding.
Leticia LozanoDr. Frühbeck Abogados, S.L.P., Barcelona, Spain
T: + 34 93 254 10 70
Dr. Frühbeck Abogados was founded in 1952 by Dr Guillermo Frühbeck and is a pioneer in consultancy, driving market internationalisation. The term “international” has been the central focus of their daily work for over 60 years and forms an essential part of their business philosophy.
Leticia Lozano joined the international law firm Dr. Frühbeck Abogados, S.L.P. in Barcelona as a lawyer in 2009. She holds wide-ranging experience in the areas of bankruptcy proceedings and debt collection as well as civil, commercial, corporate and litigation law.
Published: Spring 2017 l Photo: Colourbox.de