A lender’s guide to the Spanish insolvency system


Filing for insolvency has specific advantages and disadvantages for creditors and debtors. However, in Spain, an insolvency filing has traditionally been the least-desirable alternative given that the vast majority of companies that file for insolvency ultimately resulted in liquidation. The cost and time associated with insolvency proceedings in Spain are prohibitive in most cases. Meanwhile, value is destroyed and creditors generally collect, if anything, only a nominal portion of their claims.

This Guide offers an overview of the Spanish insolvency system and also analyses and explains why creditors and debtors generally favour out-of-court agreements and other fasttrack restructuring solutions (e.g. restructuring plans and pre-pack sales of business units).

Understanding and addressing each party’s interests, including those of shareholders, debtors, creditors and even directors, is key to achieving a successful out-of-court restructuring in Spain.

Contact lawyers

Eva García

Director of Legal Innovation Madrid
eva.garcia@uria.com
+34915860158

Related practice areas