PRACTICE AREAS
Insolvency
Over 1,000 procedures. Confidence and determination.
We provide advice on all stages of corporate insolvency, from the preparation and filing of insolvency proceedings through to the representation of debtors and creditors during the proceedings, the sale of business units under a pre-pack arrangement, the assessment phase and the ‘second chance’ scheme. We have been involved in over 1,000 insolvency proceedings on behalf of creditors and have been appointed by the courts as insolvency practitioners on 35 occasions. We work in accordance with the TRLC, as amended by Law 16/2022, and seek solutions that preserve the value of the business before the proceedings erode it.
Our Approach · Value preserved, process mastered
With over 1,000 insolvency proceedings handled on behalf of creditors and 35 court appointments as insolvency practitioners, we are one of the firms with the most extensive experience in insolvency matters in Spain. We have acted in every capacity within the proceedings — as debtor, creditor and insolvency administrator — and this three-pronged perspective enables us to anticipate how each party will act before they do so.
Our practice focuses on the moments that truly determine the outcome of the proceedings. When it comes to asset transfers, we have in-depth knowledge of the two options provided for in Article 224 of the Consolidated Text of the Insolvency Act: the acquisition of the business as a whole and the transfer of autonomous production units. We know when each option best protects the purchaser, how to structure the offer, and which contingencies fall outside the scope of the transfer — and which do not. And when time is of the essence, the pre-pack allows us to prepare that sale even before the declaration of insolvency.
Insolvency proceedings do not end with a composition agreement or liquidation: the liability assessment phase may extend the proceedings to the directors’ personal assets. That is why we provide advice from the pre-insolvency stage onwards — by auditing the situation, the statutory time limits and the duties of the board of directors — and we defend the claim with the same rigour with which we plan the insolvency proceedings. Arriving on time guarantees nothing; arriving late jeopardises almost everything.
1.000+
Insolvency proceedings
35
Judicial appointments such as AC
TRLC
Specialists in Insolvency Law
SERVICES
What we do
Pre-insolvency and pre-bankruptcy (Articles 585 et seq. of the TRLC)
Statutory audit of the insolvency situation — whether probable, imminent or current — analysis of the duties of the board of directors, and notification to the court to negotiate with creditors within the legal framework.
Insolvency proceedings: defence of the debtor
Preparation and filing of the application for voluntary administration, drafting of the proposed arrangement, orderly winding-up, and legal representation throughout the proceedings and any related matters.
Representation of creditors in insolvency proceedings
Over 1,000 proceedings on behalf of creditors: notification and classification of claims, challenging the inventory and list of creditors, taking a position on the arrangement, and monitoring debt recovery.
Insolvency administration
35 appointments as court-appointed insolvency practitioners. Management of assets and liabilities, statutory reports and the claims assessment phase.
Sale of production units and pre-packaged goods
Design of competitive sale processes in accordance with Article 224 of the TRLC, definition of the scope of the transfer, protection of employees and operational continuity. Preparation of pre-pack arrangements with a binding offer prior to the declaration.
Qualifications and responsibilities of directors
Defence in the assessment phase against claims of culpable insolvency and deficit coverage. Advice and defence regarding liability for company debts under Article 367 of the Companies Act.
METHOD
How we work
Insolvency assessment
An in-depth analysis of the company’s current situation: type of insolvency, applicable statutory time limits and the duties incumbent upon the board of directors.
Strategy for the procedure
A well-considered choice of course of action — a settlement agreement, liquidation, sale of the business unit or a pre-pack — with a timetable and potential scenarios, before submitting anything to the court.
Execution and negotiation
Filing for insolvency proceedings, liaising with the insolvency administrators and creditors, and providing legal representation in the proceedings that determine the outcome.
Closure and protection
Defence in the assessment phase, protection of directors’ assets and, where appropriate, exoneration under the ‘second chance’ scheme.
EXPERIENCE
Proven track record
1.000+
Insolvency proceedings
35
Judicial appointments such as AC
TRLC
Specialists in Insolvency Law
ILP Abogados has been involved in more than 1,000 insolvency proceedings on behalf of creditors, and its lawyers have been appointed as insolvency practitioners in 35 proceedings by Commercial Court judges throughout Spain. We have initiated dozens of voluntary and compulsory insolvency proceedings, acting on behalf of both debtors and creditors, with a particular focus on the sale of business units as a means of preserving value and safeguarding jobs.
TEAM
Who advises you
FREQUENTLY ASKED QUESTIONS
What clients ask before engaging us
A debtor currently in a state of insolvency must file for insolvency proceedings within two months of the date on which they became aware, or ought to have become aware, of that state (Article 5 of the TRLC). Notification of the commencement of negotiations with creditors temporarily suspends this obligation. Failure to meet the deadline may subsequently affect the classification of the insolvency proceedings; it is therefore advisable to assess the situation as soon as possible.
A voluntary petition is filed by the debtor themselves; a compulsory petition is filed by a creditor or another authorised party. The initial procedural position is very different in each case, and taking the initiative — by applying for insolvency proceedings or negotiating beforehand — usually leaves the company in a better position than waiting for a creditor to initiate proceedings.
They may be required to pay, but this is not automatic. If the proceedings are found to be culpable — where the insolvency arose or was exacerbated by fraud or gross negligence — the judge may order full or partial coverage of the shortfall. Furthermore, liability for company debts under Article 367 of the Companies Act (LSC) may arise if the company’s winding-up was not initiated in a timely manner. We analyse and defend both aspects of the case.
This involves preparing for the sale of the company or a business unit prior to the declaration of insolvency, with the involvement of an expert appointed by the judge who solicits bids, so that the transfer can be authorised as soon as insolvency is declared. The amendment to Law 16/2022 incorporated this into the TRLC, and it is now one of the most effective ways of preserving business operations and jobs.
Yes. The declaration of insolvency does not in itself interrupt the company’s operations: continuity is the general rule, subject to the regime of intervention or suspension of powers determined by the judge. It is precisely for this reason that a well-planned insolvency strategy seeks to maintain operations whilst the liabilities are being settled.
It is the mechanism for the discharge of unpaid liabilities that the TRLC, following Act 16/2022, offers to individuals — whether business owners or not — acting in good faith: it allows them to be released from debts they are unable to pay, either following the liquidation of their assets or through a payment plan. We analyse whether you meet the requirements and which route is best for you.
For both of us, this dual experience is an asset: we have handled over 1,000 cases on behalf of creditors — including the notification and classification of claims, challenges and monitoring of debt recovery — and have a well-established practice in representing debtors and in insolvency administration. We understand the process from every angle.
AREA INSIGHTS
Featured articles
The best proof of how we work is reading us. A selection of our analyses:
Do you need advice on insolvency law?
Over 1,000 insolvency proceedings handled. Initial consultation with no obligation.