Companies all over the world enter in financial troubles, suspension of payments or end up bankrupt. These are simple facts of economic life. If you are a creditor in insolvency proceedings in Spain, your outlook is usually not too good.
In Spain, reorganisations are not common for companies and most insolvent companies end up bankrupt or simply disappear. They normally are stripped of all assets even though they give promises of repayment.
In addition, the creditor often maintains faith or hope and keeps the insolvent business alive by continuing deliveries. This same creditor, when the debtor company has filed for bankruptcy, ends up behind preferred creditors like the Tax Agency, Social Security, banks and employees.
On the contrary, foreign entrepreneurs with economic activities in Spain do not always have the necessary information and know how to file for bankruptcy when it would be opportune or even a legal obligation.
De Haan Abogados can be instrumental in determining the financial and economic situation of the insolvent debtor and check the chances to recover debts. Usually there is no hope, but our expertise and experience guarantee that, if recovery is possible, we will undertake every necessary legal action to make it happen.
Many complications occur such as bankruptcies with no assets. Under such circumstances not even the trustees receive their salaries and are subsequently not motivated to search for hidden or embezzled assets.
If your company files for suspension of payments or bankruptcy or the Spanish law obliges you to file for bankruptcy, you should act with prudence. Personal liabilities of directors should be avoided. This is a very extensive chapter in Spanish bankruptcy legislation and your position can get complicated.
We are ready to assist you.
Insolvencies and restructuring
It may happen that you or the company you represent is a creditor in a Spanish moratorium of debt, bankruptcy, or chapter eleven proceedings. The case may be that your company or subsidiary is in a situation of insolvency and needs to file for either one of these proceedings.