Towards a Preventive Restructuring of Viable Companies in Spanish Insolvency Law

Abstract

The Spanish law, within the framework of European Community Law, has established legal instruments in order to facilitate the restructuring of debtors at an early stage and, consequently, avoid insolvency and job losses, preserve technical knowledge and capabilities and maximize total value for creditors and owners, but also for the economy as a whole. The circumstance that the restructuring is carried out without the need to open bankruptcy proceedings and, more precisely, in order to avoid its opening, explains why we are talking about pre-bankruptcy law and pre-bankruptcy instruments or institutes. In the present work the one related to the communication of the opening of negotiations with the creditors is exposed, whose ultimate meaning is that the debtor can enjoy a stoppage or temporary suspension of the singular, judicial or extrajudicial executions, on the assets necessary to continue with its business activity, in order to facilitate the negotiations of that restructuring plan. This continuity makes it possible
to preserve the value of the company and, therefore, if the negotiations end satisfactorily, to maximize the excess value associated with a pre-bankruptcy restructuring.