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New amendment to the Spanish Insolvency Law: Royal Decree-Law 11/2014

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01 September 2014

The Royal Decree-Law 11/2014 aims to broaden the ability of corporate debtors to enter into compositions with their creditors, to enable them to survive as going concerns, notwithstanding that the debtors have been declared insolvent and have entered into formal insolvency proceedings.

Certain cram-down procedures enabling financially distressed debtors to refinance or restructure their debts are now available providing debtors with another potential exit route from judicially declared insolvency through a composition agreement implemented pursuant to a homologación.