New reform of pre-bankruptcy phase, in the Decree-Law 4/2014 of 7 march

Abstract

The need to prevent the destruction of insolvent companies as a result of the bankruptcy liquidation, has led the government to precipitate the fourth reform pre-bankruptcy phase through the recent Royal Decree-Law 4/2014 of March 7, the measures taken are aimed to remove the rigidities that suffered refinancing agreements, reducing the percentage of liability necessary for that purpose, eliminating the need for independent expert report, and involving secured creditors in reaching the agreement, together with a new extension effects to non-signatories of the agreement and dissenting creditors. In addition to measures for pre-bankruptcy phase, adopting other more minor for bankruptcy.