Regulatory Alerts2014-10-01
Added · Updated
Law 17/2014 of 30 September adopting urgent measures on corporate debt refinancing and restructuring
The Spanish State enacted Law 17/2014 to facilitate the financial restructuring of viable companies by modifying the Bankruptcy Law to strengthen pre-bankruptcy refinancing agreements. The legislation introduces protective measures such as suspending asset executions during negotiations, establishes a 'safe harbor' for direct creditor-debtor agreements that improve the debtor's financial position, and grants temporary super-priority status to new financing. Additionally, it reforms the regime for judicial approval of refinancing deals, clarifies the treatment of secured creditors, and incentivizes debt-to-equity conversions to restore credit flow.
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