Thanks to this restructure, Spain’s
distressed private sector has access to a local version of the
UK scheme of arrangement
An unexpected court ruling makes
Spain's new cramdown proceedings more accessible to the
country's growing number of distressed companies, and will spur
more constructive restructuring negotiations.
Local investment banks have already been approached by many
corporates that are now able to take advantage of Spain's
answer to the UK scheme of arrangement.
Celsa Group's €2.8 billion ($3.72 billion) restructure,
concluded in August by an appeal court ruling, is the first
time the country's judicial cramdown proceedings have been
imposed on secured, syndicated creditors.
"This could change the way restructurings in Spain are
carried out, and in particular the way dissident creditors
oppose these deals, given the Celsa transaction has shown that
their legal position may be not as safe as they thought it
was," says Ángel Pérez...