The bankruptcy "Pre-pack" and the figure of the "Administrator in matters of restructuring"

Episode directed by Jesús Redondo, lawyer in Lener's Financial Advisor department.

In this episode, we analyze the protocol drawn up by the commercial judges of the Balearic Islands that implements, in pre-bankruptcy headquarters, the figure of the "administrator in matters of restructuring" and the "pre-pack" (or packaging of production units prior to the concurrence) introduced by the Directive on Early Restructuring Frameworks (pending transposition since July 17, 2021), as a preliminary phase of the subsequent bankruptcy application procedure accompanied by a liquidation plan drawn up by the debtor, ex art. 530 TRLC (old art. 191 ter LC).

This is intended to achieve in the current economic context caused by COVID, three primary objectives: (i) avoid the destruction of the business fabric by ensuring the sale of viable production units, through an agile process and with guarantees of publicity and transparency; (ii) keep the job and (iii) maximize the sale price so that it results in a higher collection of the creditors involved in the bankruptcy estate.

Podcast published in Economist & Jurist. Click here to listen to it.