The Spanish restructuring regime: a focus on the role of shareholders

More than two years have passed since the enactment of Act 16/2022 of 5 September, which amended the Spanish Recast Insolvency Act to implement the European Union Restructuring Directive in Spain. The implementation of this law has led to a substantial structural reform of the Spanish insolvency regime, particularly affecting the Spanish pre-insolvency system.

Now that we have had the opportunity to test this new system across a diverse array of complex transactions aimed at avoiding – or overcoming – the insolvency of operationally viable debtors with financial difficulties, we can confirm that the new legal framework has drastically transformed restructuring deals in Spain. More notably, it has altered negotiation dynamics, granting a leading role to creditors due to the leverage they have acquired over insolvent or imminently insolvent debtors and out-of-the-money shareholders.

In this article, we focus on the role of shareholders in the Spanish restructuring framework.

See complete article at: Insolvency and Restructuring International (IRI). American Bar Association, Vol. 19, No. 1, May 2025.