Saturday, June 25

The Council of Ministers will approve the bankruptcy reform this Tuesday

  • Calviño announces the approval of a bill that arrives late with respect to the provisions of the Recovery Plan

  • The new regulation seeks to facilitate the restructuring of the debt of viable companies

The Council of Ministers plans to approve the bankruptcy bill on Tuesday, as announced on Monday by the economic vice president, Nadia Calvin, in the Congress of Deputies. According to the text that the Government submitted to public information in August, this bill transposes the directive on restructuring and insolvency and seeks to establish a framework to minimize the destruction of the productive fabric and facilitate the maintenance of viable companies that are experiencing difficulties in meeting their obligations. of your debts.

The new bankruptcy law is one of the reforms committed within the Recovery Plan for access to European funds. According to this Plan, the reform should have been approved by the Council of Ministers in the second quarter of 2021 and by the Cortes, in the fourth quarter. With a certain delay on the scheduled schedule, then, the Council of Ministers is preparing to approve the reform project on Tuesday in a context of a sharp increase in bankruptcy due to the effect of the pandemic.

Bankruptcy moratorium

According the latest data from the General Council of the Judiciary (CGPJ), bankruptcy proceedings – old suspension of payments – presented in Spanish courts during the third quarter exceeded the barrier of 4,100 proceedings, which is 50.8% more than the total registered in 2019, before the pandemic, and a 12.4% more than in 2020. It, despite the call ‘bankruptcy moratorium’ that the Government ordered in March 2020 on the occasion of the pandemic to eliminate the obligation of the debtor who is in a state of insolvency to request the declaration of insolvency and for the non-admission to processing of the necessary insolvency applications presented by creditors. The objective of this ‘bankruptcy moratorium’ is to give viable companies time under normal market conditions to restore their equity balance and save their activity and employment.

Precisely, to compensate for the delay in the approval of the bankruptcy reform, the Council of Ministers decided on November 23 extend the ‘bankruptcy moratorium’ -which expired this December 31- until June 30, 2022, while the new law is processed.

General lines of the reform

According to the Ministries of Economy and Justice, the new text is aimed at guaranteeing that viable companies and entrepreneurs that are in financial difficulties have access to an effective procedure of preventive restructuring that allows them to continue their activity. It also seeks that insolvent natural persons entrepreneurs can enjoy the exoneration of their debts, after a reasonable period of time, favoring the second opportunity. With the new law, micro-businesses They will have a procedure specifically adapted to their needs and characteristics. In addition, it is intended to improve the efficiency of the bankruptcy procedure in order to reduce its duration.

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Green hydrogen part

During his appearance before the Joint Commission for the European Union to report on the progress in the deployment of the Recovery Plan, Calviño has also announced that this week the Government will launch four calls for the Perte (strategic project for recovery and economic transformation) of renewable energy, renewable hydrogen and storage. President Pedro Sánchez anticipated last week that the first calls would add up to a total of 500 million, within the large figures of this Perte, which plans to mobilize investments of more than 16,300 million euros, and the creation of around 280,000 jobs between direct and indirect in the coming years.

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