11/18/2021 at 8:33 a.m. CET
David Page / Cristina Gallardo
The government has been chaining since the beginning of the pandemic Bankruptcy moratoriums to avoid escalating company closures affected by the cessation or decline in activity during the crisis. Since April 2020, in the midst of the first state of alert, these moratoriums have been extended, which allow companies that would be viable under normal business conditions not to file for bankruptcy or to activate their creditors.
The aim of the measure proposed by the executive is to maintain business activity and employment while returning to pre-crisis levels. That means providing companies with legal tools to create a cascade of Bankruptcies of Companies and facilitate refinancing agreements and out-of-court arrangements.
The current bankruptcy moratorium ends next December 31 and from the business associations they are starting to mobilize in order to obtain a new extension of the measure. Entrepreneurs and freelancers are calling for the suspension of the bankruptcy filing obligation to be extended in order to avoid a bankruptcy wave at the beginning of next year and the collapse of the courts responsible for bankruptcy administration.
From the employer CEOE and the Federation of Workers’ associations Self-employed (AT A) It should be noted that the Ministry of Economic Affairs, under the command of Vice President Nadia Calviño, must extend the bankruptcy moratorium beyond this year due to the enormous number of companies that are still in trouble and are still covered by auxiliary systems (particularly ERTEs linked to Covid, now extended until the end of February next year while working on a new permanent ERTE system).
“Ending the moratorium on insolvency does not make sense under the current economic circumstances. It must be sustained until we see how companies behave after the aid is withdrawn and until the economic recovery is complete. If not, the courts will be overwhelmed, “he argues Celia Ferrero, Vice President of ATA. “The moratorium should be in place until 2022,” sentence. A full year extension, which is the same as the previous extension approved by the government in mid-March and through to the end of 2021, but which may be excessive.
However, both CEOE and ATA handle one more scenario that they deem to be almost indispensable for practical and operational reasons: extend the moratorium at least until the insolvency law reform comes into force which were drawn up by the justice and economics ministries and serve to implement the European corporate restructuring guidelines.
Although entrepreneurs and freelancers oppose some of the measures provided for in the government’s draft law (the retention of the privilege of national debt with the state treasury and social security in the event of restructuring or second chance, the lack of an early warning system, Eliminating the number of liquidators in the case of micro business bankruptcies& mldr;), acknowledge that the regulation will include advances such as the development of restructuring plans as pre-bankruptcy tools, some improvements to the second chance mechanism, or changes to streamline the bankruptcy process. Hence, employers understand that there is no point in ending the bankruptcy moratorium once the law reform is in place.
The government rush
The new regulations are still in the preliminary draft phase and await comments from General Council of Justice (CGPJ), the Fiscal Council and the State Council, the final bill has to be approved by the Council of Ministers and then processed in the Cortes. The maximum deadline for the implementation of the EU Directive 2019/1023 expires in July 2022. In the best case, this is the period in which they can be expected to come into force, and thus the point in time when employers assume at the beginning that the end of the bankruptcy moratorium should be postponed.
However, various economic sources and the legal industry doubt that the planned upper limit will be met despite the Ministry of Justice and Ministry of Economy You have a particular interest in the implementation of the reform of the bankruptcy law that you presented at the beginning of August and have therefore initiated an urgent procedure to accelerate the approval periods. The government justifies the rush on the fact that it is one of the most important reforms of the Plan for Reconstruction, Transformation and Resilience and because it is crucial at a time when many companies are still in trouble after the crisis.
Because of this urgency, the government’s request for mandatory reporting to the CGPJ in “Urgency”, that is, over a period of 15 days. But the judges panel has already informed the government that this request is taking too little time for the members who are required to deliver the opinion.
CGPJ sources advise EL PERIÓDICO DE ESPAÑA, a newspaper belonging to the same communication group as this medium, that the report should be ready later this year, and for this work was given to members Mar. entrusts Cabreajas and Juan Manuel Fernández, who are already working on the text. For his part, from the Finance Council It only confirms that she wants to include the discussion of her mandatory report in one of the next plenary sessions.
The bill has 245 pages, 755 new articles and 11 additional provisions. With this regulation and complexity, entrepreneurs and freelancers complain that the government did not consult them when preparing the preliminary draft (although the Community directive to be implemented was approved by the EU institutions more than two years ago). and that it was only granted to them 15 working days Bring your allegations in the middle of the holiday month (between August 4th and 25th) as this is an urgent matter.
“During these two years, Spanish companies were not consulted, nor were any initiatives taken by the ministries involved. [el de Justicia y el de Asuntos Económicos] to publish the draft or to obtain the opinion of the Spanish business sector & rdquor ;, indicates CEOE in the document of the allegations of the draft. “Acceptable democratic behavior and its purpose was that normative quality I would have recommended consulting Spanish companies for technical advice.
It has been criticized as being by the Registry of Forensic Economists (REFOR), a specialized body of the General Council of Economists of Spain (CGE) in bankruptcy matters “Not serious” that for such a far-reaching law, only 15 working days were allowed in August, a period he described as “ridiculous”. “While we understand the government’s rush to implement the reforms pledged in the Brussels stimulus package, we believe that reform that affects the survival of our businesses deserves a slightly longer period of reflection,” said Valentín Pich, President of the CGE.