GA_P advises Virtón in opposing the application for judicial approval of the restructuring plan of Compañía de Phalsbourg.

Gómez-Acebo & Pombo has advised Virtón, a company specialised in the construction of infrastructures and civil works, in the opposition to the application for judicial approval of the restructuring plan submitted by Compañía de Phalsbourg, developer of the ‘Oasiz Madrid’ shopping and leisure complex.

Compañía de Phalsbourg submitted a restructuring plan based on the premise of liquidating both the shopping centre and other assets (all belonging to related third party companies), in order to partially satisfy its debt of more than EUR 100 million. In order to ensure its enforceability, the judicial approval was also intended to prevent the various creditors from having their debts satisfied through the enforcement of guarantees provided in their favour by the group’s French parent company. Following out-of-court approval, Compagnie de Phalsbourg applied for judicial approval of the restructuring plan with a preliminary contradiction phase. Several creditors, led by Virtón, filed their opposition to the judicial approval of the restructuring plan. In view of the legal complexity of the case, a hearing was held in which GA_P led the group of creditors opposing the plan.

On 28 October 2024, Madrid Commercial Court no. 14 issued judgment no. 108/2024, by virtue of which it upheld the grounds for opposition presented by Virtón and other creditors and, consequently, agreed not to homologate the plan, with Compañía de Phalsbourg being ordered to pay the costs of the proceedings. The judge found that the proposed restructuring plan did not offer a reasonable prospect of avoiding insolvency and ensuring the company’s viability, and that it did not meet certain content requirements under insolvency law. This result sets a precedent for the refusal of judicial approval of restructuring plans.

The GA_P team was formed by Luis López, Julio Jiménez and Jennifer Marchante, partner, senior associate and associate, respectively, of the Litigation and Arbitration team; and Miguel Ángel García Otero, senior associate of the Public team.