Amendments To The Insolvency Act Passed

5 May 2009

On April 1, 2009 Royal Decree-law 3/2009 dated March 27th went into effect, encompassing urgent measures in tax, financial and insolvency law in view of the current economic situation.

Royal Decree-law 3/2009, date March 27th, went into effect in response to the global economic crisis and the impact it is having on the Spanish economy in an aim to adjust some of the laws which most affect businesses to this new reality.

The modifications to the Insolvency Act were motivated by the fact that the Act was passed in radically different economic circumstances and practical application had shown that various regulations therein are now sorely inadequate. The amendments to same attempt to avoid insolvency proceedings by opening the way to the refinancing of companies currently undergoing financial difficulties with the consensus and approval of their creditors. They likewise are streamlining the procedures, reducing the procedural costs and strengthening the legal standing of the employees in the insolvent companies.

For further information, please contact Christian Krause Moral: ckrause@mmmm.es