TRLC Reform Bill: How it affects Restructuring Plans
11/02/2022
TRLC Reform Bill: How it affects Restructuring Plans
Podcast
We comment on the novelties introduced in the "Draft bill to Reform the TRLC" with respect to the "Preliminary Draft of this Law" in relation to the Homologated Restructuring Plans.
4 August 2021, the Preliminary Draft Bill to reform the TRLC is published and 14 January 2022, the Draft Bill to reform the TRLC approved by Royal Legislative Decree 1/2020, of 5 May, for the transposition of EU's Directive 2019/1023 of the European Parliament and of the Council, is approved by the Council of Ministers on 21 December 2021 and published in the Official Gazette of the Spanish Parliament (BOCG), of 20 June 2019, on preventive restructuring frameworks, debt waiver and disqualifications, and measures to increase the efficiency of restructuring, insolvency and waiver procedures of debt, and amending Directive (EU) 2017/1132 (Restructuring and Insolvency Directive).
The novelties introduced in the Project are intended to facilitate the aforementioned Restructuring Plans, and mainly concern probable insolvency and public law credits.
In no case may the restructuring plan entail, for public law credits, the reduction of their amount; the change of the applicable law; the change of debtor, without prejudice to the assumption of the payment obligation by a third party without releasing the debtor; the modification or extinction of the guarantees they may have; or the conversion of the credit into shares or equity, into a participative credit or loan or into an instrument with characteristics or rank different from those of the original one.
The public-law receivables affected by the restructuring plan must be paid in full within the following deadlines:
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See the full article in Economist and Jurist.
And you can also listen to it in the following podcast:
