Royal Decree-Law 34/2020, of 17 November, on urgent support measures for corporate solvency and the energy sector, broadened some of these measures and specifically extended the moratorium on insolvency until 14 March 2021. This implied extending until 14 March 2021 the suspension of the duty to request the declaration of insolvency and also extended until the same date the judge’s obligation to admit an insolvency for processing if so requested by the creditors.
The Spanish Government, on 12 March, extended this moratorium until 31 December 2021. It is worth analysing what other assistance for companies will materialise, as the moratorium, which initially may have been necessary, if extended too much over time, could de-incentivise viable companies going through hard times from adopting measures when they could do so in time.
The time in which to re-negotiate both refinancing agreements and out-of-court agreements for payment have likewise been extended (both are pre-insolvency instruments), as have the insolvency arrangements themselves. Additionally, the procedural measures that streamline the processes, such as preferential processing and the promotion of out-of-court auctions, have also been extended until 31 December 2021.