Ignacio Buil Aldana Act 14/2013, of September 27 2013, favouring entrepreneurs and their internationalisation (the Act), has introduced a wide range of reforms on several insolvency, corporate, tax and labour matters. Regarding insolvencies, the Act (among other changes) significantly reduces the quorum of financial creditors required for court-sanctioned refinancing agreements. It also includes a new out-of-court device in order for debtors and creditors to reach payment agreements binding dissident creditors. With respect to the court-sanctioned refinancing (the so called Spanish scheme), the Act lowers the 75% (of financial debt) support threshold required under additional provision 4 of the Insolvency Act to court-sanction a refinancing agreement to a mere 55%. Further, the Act clarifies that that quorum be superimposed on the quorum required for refinancing agreements under article 71.6 of the Insolvency Act (60% of total debt, including financial debt), in line with both doctrine and case law. This reform is aimed at facilitating Spanish schemes by simplifying and lowering the threshold to reach the relevant majorities. This, of course, may have an effect on existing and future Spanish restructurings even if other key issues such as the ability to cram-down secured creditors is still uncertain, despite relevant developments in this regard (such as the Celsa case).
October 30 2013
