Law 3/2020, of September 18, on procedural and organizational measures to address COVID-19 in the field of the Administration of Justice, which comes from Royal Decree-Law 16/2020 which it repeals, has been published in the Official State Gazette (BOE) on September 19, 2020, containing measures among which we highlight the measures in the insolvency and corporate field.
We inform you that in the Official State Gazette (BOE) of September 19, and with entry into force on the 20th, Law 3/2020, of September 18, on procedural and organizational measures to deal with COVID-19 in the field of the Administration of Justice, has been published, which comes from Royal Decree-Law 16/2020 which it repeals, containing measures among which we now want to highlight, due to their importance, those related to the insolvency and corporate field.
MEASURES IN THE INSOLVENCY AND CORPORATE FIELDS
- Amendment of the insolvency agreement, the out-of-court payment agreement, or the approved refinancing agreement. Amendments to the agreement, even those within the compliance period, may be submitted until March 14, 2021, inclusive. Furthermore, the judge will forward to the debtor all requests for a declaration of breach of the agreement submitted by creditors until October 31, 2020, inclusive, but will not admit them for processing until three months have elapsed from the end of that period. During those three months, the debtor may submit a proposal to amend the agreement, which will be processed with priority over the request for a declaration of breach.
Furthermore, with regard to approved refinancing agreements, it is also possible to submit a new application without the need for 1 year to elapse since the submission of the previous one.
- Postponement, until March 14, 2021 inclusive, of the duty to request the opening of the liquidation phasewhen, during the validity of the agreement, the debtor becomes aware of the impossibility of fulfilling the committed payments and the obligations contracted after the approval of that agreement.
- The suspension of the obligation to file for insolvency proceedings has been extended until December 31, 2020, inclusive. Furthermore, it is stipulated thatlosses incurred in the current fiscal year will not be taken into account for the purposes of the legal grounds for dissolution due to losses.
- Claims arising from financing commitments or guarantees provided by third parties, including those closely related to the debtor, that appear in the proposed agreement or in the proposed modification of an agreement already approved by the judge, will be classified as claims against the estate in the event of liquidation. Claims of those closely related to the debtor in insolvency proceedings declared within two years of March 14, 2020 (the date the state of emergency was declared) will also be classified as ordinary claims
- Streamlining the insolvency process, establishing the non-need for hearings, the confession of insolvency, the preferential processing of certain actions aimed at protecting the rights of workers, maintaining the continuity of the company and preserving the value of assets and rights, as well as simplifying certain acts and incidents (auctions, challenge to inventory and lists of creditors or approval of liquidation plans).
OTHER MEASURES
- Extraordinary change in contractual circumstances: Before December 20, 2020, the Government will submit to the Justice Committees of the Congress of Deputies and the Senate a study on the legal possibilities and options, including those existing in comparative law, for incorporating the "rebus sic stantibus" rule into the legal framework for obligations and contracts. The analysis will include the most significant available data on the impact of the COVID-19 crisis on private contracts.
- Electronic intervention of notaries and registrars: Before June 20, 2021,the Government will submit a Bill to the Cortes Generales, after consulting the General Council of Notaries and the College of Registrars of Spain, to enable electronic notarial and registry intervention with the aim of facilitating the provision of notarial and registry services without the need for physical presence.
You can contact this professional office for any clarification you may have in this regard.
Warm regards,
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A Àmbit Assessor, SL has 40 years dedicated to the tax, comptable and labor consultancy of the Pime.
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