New Bankruptcies Law Sparks Debate About Business Survival
Alicante economists see the updated bankruptcy framework as a way to boost business survival. They argue the reforms offer distressed companies more agile options to renegotiate debt. A board member highlighted this point on Wednesday, noting that once the new regulations are published in the Boletín Oficial del Estado and take effect within 20 days, companies will have access to the streamlined tools.
The forthcoming law is set to become a central topic of analysis and discussion at the sixth Mediterranean Professional Congress, scheduled for September 15 and 16 at the Villaitana Hotel in Benidorm. The event is organized by the Associations of Economists across Alicante, Murcia, Valencia, and Castellón.
According to Robles, the new statute transposes European directive 2019/1023 into Spanish law, aiming to introduce reforms that speed up and improve bankruptcy procedures. The goal is to preserve viable businesses facing solvency challenges while preventing a full collapse, and to reduce court bottlenecks as cases move through the system.
Among the notable features is Expert, a new instrument within the law designed to support restructuring plans. It provides a practical tool for keeping viable debtors out of bankruptcy or guiding them to a controlled exit when needed.
Micro Enterprises and the New Procedure
The reform also introduces a dedicated procedure for micro enterprises, defined as firms with fewer than 10 employees and independent contractors. The anticipated cost is expected to be low, increasing the chance of continuity for viable firms. This new pathway is set to start on January 1, 2023, with a transition period until the digital platform responsible for execution is fully functional, according to the economist.
Alongside these changes, the law tightens the second chance regime. While improvements are evident, Robles notes there is ongoing doctrinal debate about its practical implications.
Experts Warn of Potential Delays in Implementing the Reform
The board emphasizes the professionalization of assistant judges involved in bankruptcy processing and the government’s push toward a new model that strengthens ties between creditors and the court system. A restructuring specialist may also operate outside the courts to assist in pre-bankruptcy interventions.
Additional measures touch on the handling of collective tenders, the removal of liquidation plans, the introduction of prepacks to speed the sale of production units, and a revised structure for competition evaluation.
Under the reform, commercial courts will hold exclusive jurisdiction over bankruptcy matters. Judges will intervene only at critical milestones, and timelines will cap at 12 months from the opening of the first stage to the closing of the fifth stage. Robles notes that the reform aims to shorten the average duration of bankruptcy processes from four to five years to roughly two years, though appeals could still affect final resolution times. The practical impact will emerge as the new rules are tested in real cases.
In closing, Robles argues that the intent behind the text is to deliver substantial improvements in the overall speed of proceedings. The Mediterranean’s sixth Occupational Congress will thoroughly examine the law’s goals, acknowledging that none of the prior reforms fully met expectations. The meeting will explore how suspension of legacy payments and new restructuring tools can reduce the volume of short-term bankruptcies in viable companies. The reform’s success will hinge on its practical execution and the ability of restructuring plans to take a central role. The discussions will also cover the temporary bankruptcy suspensions enacted in 2020 and how they relate to current procedures.
Overall, the congress aims to provide a clear assessment of how the new bankruptcy framework can support healthier corporate ecosystems, with a focus on viable firms navigating temporary financial difficulties. The dialogue will continue as stakeholders monitor the law’s implementation and its impact on speed, efficiency, and creditor-consumer balance.
Notes from various experts suggest that while the reform promises faster resolution and better risk management, ongoing assessment will be essential to ensure that the measures yield meaningful economic stability without compromising fair treatment for creditors and debtors alike.