Description
Fide holds this session ON-SITE at MADRID. In order to attend it is essential to request your assistance through the AreaFide platform*.
IMPORTANT
The session will be held in English.
Panellists:
- Nuria BERMEJO GUTIÉRREZ, Tenured Professor on Commercial Law. Law School. Universidad Autonoma de Madrid (Spain)
- Adrián THERY MARTI, Head of the Restructuring & Insolvency Department at Garrigues Law Firm
- Michael VEDER, Professor of insolvency law at the Business & Law Research Centre of Radboud University Nijmegen, visiting professor at Universidad Autónoma de Madrid and adviser at the Amsterdam based law firm RESOR
Moderator:
- Francisco José GARCIMARTÍN ALFÉREZ, Chair Professor of Private International Law at Universidad Autónoma de Madrid. Fide Academic Advisor
Objectives:
There are two methods available to legally facilitate the survival of companies in financial distress. The first is the Restructuring Plan, aimed at restructuring the debt of over-indebted businesses that nonetheless operate economically viable businesses, that is, businesses capable of generating operating profit. Thanks to its commendable transposition of the First Insolvency Directive, Spain has a privileged legal framework within the European Union in the field of Restructuring Plans.
The second method is the pre-pack, conceived as an optimal mechanism for a unitary liquidation, aimed at the swift and efficient sale of debt-free business units in bankruptcy proceedings. The purpose of the pre-pack is to ensure that a business which, within the debtor’s estate, may not be economically viable, can become viable once integrated into the purchaser’s structure, and that its sale as a going concern maximizes creditor recoveries compared with the scenario of a piecemeal liquidation.
Restructuring Plans and pre-packs are clearly interrelated (if one functions well, the other is more likely to do so too, and vice versa), while also serving as mutual benchmarks (the restructuring surplus in Plans is generally measured against the business’s sale value in a pre-pack). The pre-pack will, therefore, in many cases serve as the counterfactual scenario against which the Restructuring Plan is assessed in order to determine whether it constitutes the optimal solution from a productive-efficiency perspective.
In 2022, the European Commission presented a proposal for a Directive (2022/702) harmonizing certain aspects of insolvency law, with Title IV devoted entirely to the pre-pack mechanism. This title draws on comparative experiences in pre-pack practice, such as those of the Netherlands and the United Kingdom. In this session, we will compare the current Spanish framework with the Dutch regime and practice, as well as with the new regime envisaged by the proposed Directive.
Methodology: The dynamic of the session will respect the usual rules of Fide and the participation and interaction of the speakers and attendees as well, making only the changes required for its celebration on line. All sessions organized at Fide are convened under the Chatham House Rule, participants have the right to use the information they receive, but neither the identity nor the affiliation of any other participant may be revealed.
Schedule: The session will be held from 3.00 to 4.30 pm. Prior to the session, there will be served some snacks and drinks at 2.30 to 3.00 pm.
Location: Watch Location
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