Spain

Abstract

There are a set of rules set forth in the Insolvency Act (‘Ley 22/2003, of 9 July, Concursal’ or ‘LC’) which purpose is to avoid that debtors file for formal insolvency proceedings. These rules aim to: (i) establish safe harbours for Refinancing Agreements (‘Acuerdos de refinanciación’); (ii) stay enforcement actions in the pre-insolvency stage; and (iii) allow cramming down secured and unsecured creditors in the pre-insolvency phase. Further there are some tax rules aimed to facilitate out-of-court and in-court workouts. However, there is no state agency, judge, court or tribunal that offers assistance in the negotiation of an out-of-court workout.