New procedural and organisational measures in the field of Justice, to address COVID-19. Reflected in Law 3/2020, of 18 September.
This law introduces important improvements with respect to RDL 16/2020, which sought to provide a rapid solution to the accumulation of procedures suspended due to the declaration of the state of alarm. The measures provided for in this law have now been adapted. In some cases the deadlines for their application have been extended and new aspects introduced. For example, the implementation of the Single Judicial Edict Board for the publication and consultation of resolutions and communications when established by law.
Procedural and organisational measures in the field of Justice
The experts of our Legal Department summarize these measures.
Bankruptcy measures
- Modification of the bankruptcy agreement. Until 14 March 2021 inclusive, the bankrupt company may present a proposal for the modification of the agreement that is in the period of compliance.
- Postponement of the duty to request the opening of the liquidation phase. Until 14 March 2021 inclusive, the debtor will not have the duty to request the liquidation of the assets when it becomes aware of the impossibility of complying with the committed payments. Or the obligations incurred after the approval of the bankruptcy agreement. Provided that the debtor submits a proposal to amend the agreement.
- Refinancing agreements. Until 14 March 2021 inclusive, a debtor who has an approved refinancing agreement may amend the agreement in force or reach a new one. Even if one year has not elapsed since the previous approval.
- Application for a declaration of insolvency. Until 31 December 2020 inclusive, the debtor who is in a state of insolvency shall not be obliged to apply for a declaration of bankruptcy. Whether or not the competent court has been notified of the opening of negotiations with creditors to reach a refinancing agreement. An out-of-court settlement or accession to an advance proposal for a settlement.
- Until 31 December 2020 inclusive, the judges will not admit the necessary applications for bankruptcy. Those submitted by one or more creditors, which have been filed since 14 March 2020.
- If, up to and including 31 December 2020, the debtor has notified the opening of negotiations with creditors with a view to reaching a refinancing agreement (commonly referred to as “pre-competition”), the general rules established by law will apply. However, the duty to apply for the bankruptcy will begin six months after the communication. Double the ordinary term.
- In the bankruptcy proceedings declared up to 14 March 2022 inclusive, the contributions made by the partners, administrators or other persons related to the bankrupt party will be considered ordinary credits. Instead of subordinates, as established in the Bankruptcy Law.
Corporate measures
For the purposes of determining the concurrence of the cause of dissolution for qualified losses, the losses for the year 2020 will not be taken into account. When the losses leave the net assets reduced to more than half of the share capital. And without prejudice to the duty to apply for insolvency proceedings.
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