Just over a year since the new Bankruptcy Code started operating in Spain, experts are assessing the evolving features within the current insolvency framework. Restructuring plans designed to avert outright bankruptcy and reduce stigma in commercial court proceedings have become notable elements. The Professional Association of Insolvency Administrators and Restructuring Professionals (ASPAC), along with specialized law firms, notes a meaningful shift in statistics: fewer corporate insolvencies and a sharp rise in cases filed by individuals. This trend underscores a broader move toward personal reorganization strategies within the system.
Félix Salgado, a partner at PradaGayoso, highlights these figures. In the first quarter, 4,895 insolvency proceedings were registered, rising to 5,934 in the second quarter of 2023. Catalonia accounted for about 29 percent of filings (1,714 cases), while Madrid registered 824. Most of the total in the second quarter involved natural persons (4,679) compared with 1,215 companies. Notably, among the corporate filings there were no companies with a turnover exceeding 10 million euros. These numbers point to a trend where individuals and small enterprises are driving the volume, rather than larger corporations. [Attribution: ASPAC data, 2023 update]
The practical effect is that many firms do not turn to court as the first recourse to solve their problems. Salgado explains that younger and smaller entities, along with individuals seeking a second chance, are taking advantage of new discharge provisions. Diego Comendador, president of ASPAC, warns that these processes enable debt cancellation but also carry risk that must be carefully managed.
“Second chances require safeguards to avoid encouraging reckless debt,” the association argues. They advocate for tighter regulation to prevent abuse and misapplication of the reform, ensuring that the system serves genuine recovery rather than exploited loopholes.
Evaluating the law’s first year, Comendador notes substantial impact: the reform has altered the economic and legal landscape due to a marked rise in declared bankruptcies—nearly doubling versus the same period the prior year. Yet, a closer look reveals that most of the surge comes from natural persons rather than corporate entities. The interpretation is that corporate insolvencies have fallen while personal insolvencies have surged, reflecting significant shifts in how financial distress is being managed. [Attribution: ASPAC analysis, 2023 summary]
There is concern that a large portion of the filings involve non-mass bankruptcies under the new non-mass regime. The central issue, researchers note, is whether the system can withstand potential misuse or fraud while preserving access to relief for those in genuine need. The legal framework requires creditors to be notified, and if no objections are raised, actions may be archived; if creditors oppose, the bankruptcy administrator must respond and recoveries paid from available assets. This mechanism helps explain why some asset-rich entities still pursue bankruptcy relief.
Cases continue to reach the courts. On September 4, a significant decision emerged when Barcelona’s Commercial Court No. 2 ruled in favor of creditors in the Celsa case against the Rubiralta family. This steel group, backed by restructuring plans assessed by specialized funds with substantial debt, affects a firm employing thousands and generating substantial turnover. The ruling illustrates how restructuring plans approved under the reform can shape outcomes for large, complex enterprises.
Restructuring plans
Salgado notes a growing demand for restructuring advisory work, driven by the new framework, although there are limited statistics since formal plan approvals are not mandated by law. The reform encourages early planning as a pretrial instrument, enabling parties to take preemptive steps to avoid or mitigate financial distress.
Analysts emphasize the importance of precautionary measures and preventive actions, explaining that these steps can significantly alter debt trajectories. A Madrid firm focused on real estate promotions and development successfully refinanced its obligations to creditors through one of the initial restructuring efforts following the reform, demonstrating the potential for sustainable recovery when plans are well designed.
The strategy can allow deferral of payments for extended periods, including a several-year horizon with favorable terms, while preserving creditor rights. The plan does not automatically remove or transfer voting creditors who disagree in a case with high loan values. This approach was validated by Commercial Court No. 5 in Madrid and illustrates how the new regime operates in practice.