By historic decision owned by steel company Celsa it’s still hot and the statistics don’t seem to reflect significant changes. Spanish bankruptcy marketThe argument is self-serving. Was the bankruptcy reform approved about a year ago positive or negative? Is this useful? What’s this Col·legi d’Economistes de Catalunya (MSK) we consulted the opinions of five experts associated with the sector in one way or another and came to the following conclusion almost unanimously: “The law is good, we need to implement the paradigm change it promises us, we need a real change of mentality”, served RCD Concursal’s partner lawyer in the field of insolvency, Cristian Valcárcel. “There is a need for a cultural shift in this country that will increase the number of procedures without the reputational concerns of starting the insolvency process as soon as possible.” Economist and partner at Roca Junyent, Josep Pujolras.
Along with them, they also had similar views: nominal magistrate of the Commercial Court No. 1 of Barcelona, Yolanda Rios; HE President of the Cercle d’Economia, Jaume Guardiola; And president of Pimec, Antoni Canete. All of this is a matter of the European Union (and especially Spain) has designed a new legal framework to try to ensure that a viable company does not die after making a claim. bankruptcyIt is a law that came to Spain “in a spirit of heading in the right direction” and with “good intentions”, but it does not currently prevent 90% of insolvency proceedings from ending in liquidation.
“It doesn’t work in practice,” Cañete summarized. For example, he finds deficiencies. micro business landThere’s some desperation in this law, but the most repeated message was that much of the problem is outside the law rather than inside it. “We need a cultural change that is completely necessary,” Pujolràs said, underlining two important issues: The main instinct in Spain is often protect personal assets It is stated that the tenders were submitted late and poorly, and the companies had little oxygen and capacity to react.
Additionally, Guardiola questioned whether Brussels’ commitments had been signed. Re-industrializing Europe Empowering large domestic companies with a law that gives much more power to investment funds. The head of the Cercle d’Economia said that the main objective of such companies, by definition, is to maximize profits, normally achieved by moving or selling certain assets to third parties.
Passover competitions
In this sense, Celsa and the government that transferred its property to the creditors, not the founding family, became the protagonist. “The directive clearly says: current or imminent bankruptcyJudge Ríos, who defended the judge’s sentence in the case without any nuance, said: “A company that is not an SME can be swallowed by creditors” and the only thing left up in the air is that perhaps in such cases it should be agreed that such decisions do not fall on a single person. “It’s a shame to lose a strategic Catalan company, but A judge cannot separate himself from the path drawn by the norm” he finished.
Beyond this, other issues that concern this group of experts are once again paramount, given that, as Valcárcel points out, Celsa’s case is an exception rather than the norm. procedure for micro enterprises (“Doomed to fail, because bankruptcy mediation”, the same lawyer assured) and The rise of free competitionsAnother phenomenon closely linked to bankruptcy reform.
“The legislator wanted to be a guarantor, but he acted very knowledgeably,” the lawyer said. Previously, the judge had the option of resorting to this route of governing companies. They do not have sufficient assets to cover all their debts (which is more cost-effective in terms of time and money), but there are now four assumptions that force the magistrate to go this route. “Sometimes you think the best thing to do to enter the competition for free is to make an agreement in advance,” Valcárcel said. In fact, Judge Yolanda Ríos, who was behind him, confirmed that such cases already exist.