[BANKRUPTCY, INSOLVENCY & REHABILITATION PROCEEDINGS IN SPAIN] 109
provided that you are in actual insolvency (not if it is imminent or probable). The main effects of the negotiation period are the suspension of judicial or extrajudicial executions of the assets and rights necessary to continue the activity, except with respect to public creditors, and the impossibility for creditors to file for insolvency proceeding. The special procedure for micro-enterprises can be processed in two ways: a) As a continuation procedure, for
continue the activity for a maximum period of three months. b) As a liquidation proceeding, which will be opened at the request of the debtor, when the continuation plan is not approved, homologated, or not complied with and, very importantly, if the debtor is not up to date with its tax or Social Security obligations accrued after the opening of the insolvency proceeding. Also in the liquidation proceedings, certain measures may be requested, the most important of which is the suspension of the execution of secured claims on the assets or rights necessary to continue the activity for a maximum period of three months. The liquidation will be carried out through the electronic platform system and cannot last more than three months, extendable for an additional month.
which it will be necessary to approve a Continuation Plan that must be approved by the creditors, which must be homologated in order to affect public law claims, with certain exceptions. In addition, with the application for the Continuation Plan, it is possible to request, among other measures, the suspension of the foreclosure of credits with real or public guarantee on the assets or rights necessary to
ILN Restructuring & Insolvency Group – Bankruptcy, Insolvency & Rehabilitation Series
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