New developments in insolvency law. Extension of the insolvency moratorium.
A series of insolvency measures have been approved to facilitate the continuity of companies affected by the crisis. These include:
- A new extension of the insolvency moratorium in force from March 2020 until the end of 2021 is agreed upon. Thus:
- The exemption from the obligation for debtors in a state of insolvency to file for bankruptcy is extended until December 31, 2021. Therefore, the two-month period that debtors have to request voluntary bankruptcy proceedings must be calculated from the date the suspension of this obligation ends (December 31, 2021).
- The processing of applications for compulsory insolvency proceedings submitted by creditors since March 14, 2020 , is also suspended until December 31 , 2021. (Amendment to Law 6/20, of September 18)
- For companies and self-employed individuals experiencing difficulties, there is the possibility of submitting an amendment: to comply with a collective bargaining agreement, an out-of-court payment agreement , or an approved refinancing agreement. (Amendment 3 and 5 of Law 3/20, of September 18)
- Provided that the debtor submits a proposal to modify the agreement and it is admitted for processing within the deadline: the duty to request the opening of the liquidation phase may be postponed when, during the validity of the agreement, the debtor becomes aware of the impossibility of fulfilling the committed payments and the obligations contracted after its approval.
- The modification of the agreement, the out-of-court payment agreement or the approved refinancing agreement is facilitated.
- Possibility of renegotiating refinancing agreements without the need for a year to have passed since their approval (although it was already in force for all those agreements approved up to March 14, 2021).
- A period is given for the renegotiation of a new agreement or covenant in the event that a creditor submits a request for a declaration of breach of a refinancing agreement, covenant or out-of-court payment agreement; as well as its inadmissibility for processing.
– This regime, which was in force for non-compliance requests submitted until January 31, 2021, applies to new companies, professionals and the self-employed, from that date until September 30, 2021.
- Priority processing of certain actions aimed at protecting workers' rights: maintaining the continuity of the company and preserving the value of assets and rights, as well as simplifying certain acts and incidents such as auctions of assets, to facilitate the functioning of the Commercial and First Instance Courts.
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