BANKRUPTCY, INSOLVENCY & REHABILITATION PROCEEDINGS IN SPAIN] 100
representing one fifth of the debtor's assets. The filing of the proposal may be formalized at any time from the filing of the insolvency lawsuit and up to 15 days after the presentation of its report by the Receiver. As for the content of the proposed arrangement, it must include proposals for a debt reduction, a waiting period, or both, as well as the conversion of credits into shares in the bankrupt company or the transfer of assets in payment of debts. Together with the agreement proposal, a Viability Plan must be presented, specifying the resources with which the payments will be met, which must also be reflected in a Payment Plan that will be provided with the agreement proposal. The proposed arrangement must be evaluated by the Receiver before being submitted to the creditors for approval at the relevant creditors' meeting. Depending on the content of the proposal, its approval will require the adhesion (by electronic means) of the majority of the credits or up to 65% of the ordinary credits. Once the creditors have voted in favour of the arrangement proposal, the judge will review compliance with the corresponding formalities and requirements and, if such compliance is verified, will issue a judgement of approval. The judgement approving the agreement will entail the cessation of
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A statement of the state of the debtor's accounts; An explanation of the main decisions and actions taken by the Receiver itself. A reasoned statement of the debtor's assets and any other elements that may be relevant to the proceedings.
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The report must also be accompanied by an Inventory and a List of Creditors drawn up by the Receiver itself. The List of Creditors will include a classification of the creditors' claims according to their characteristics, which will determine their collection preference and their rights within the Agreement or Liquidation Phase. Finally, in the case of a company, a valuation must be provided for the company as a whole and for each of the production units that make up the company, both in the hypothesis of continuity of activity and in liquidation. Once the report has been issued by the Receiver, the creditors and the debtor himself may object to both the Inventory and the List of Creditors if they do not agree with what is reflected in either of these documents. In the event that no objections are filed or once those filed have been resolved, the Receiver will make the Inventory and the List of Creditors definitive, which may no longer be subject to variations. II.2.2. Agreement Phase: The purpose of this phase is to process a payment proposal to creditors. The proposal may be made either by the debtor or by all the creditors
ILN Restructuring & Insolvency Group – Bankruptcy, Insolvency & Rehabilitation Series
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