«The Celsa case has solved the doubts in a solvent and correct manner, taking into account the objectives pursued by the national legislator» | El Economista

The Celsa case has become a key precedent for the interpretation of the new restructuring framework in Spain. Miguel Lamo de Espinosa, partner coordinating Banking and Finance and Restructuring at Gómez-Acebo & Pombo, and Rodrigo López González, partner coordinating Insolvency Law at Gómez-Acebo & Pombo, share their view on its impact.

According to them, “the Celsa case has solved the doubts in a solvent and correct manner, taking into account the objectives pursued by the national legislator, by mandate of the EU legislator”. In their opinion, the next step is for the interpretative line marked by this first and highly significant ruling to become established in the coming months.

In addition, they note that the new regulation links the type of restructuring to the value of the company. As a result, it is not out of the question that more creditors may enter into the capital of their debtors in future restructuring processes.

Overall, the Celsa case may play an important role in shaping restructuring practice in Spain. It provides greater legal certainty and may encourage new processes under the current legal framework.

Read full article