Miranda Gonzalez, Associate in the Restructuring and Insolvency Department, has published an article in El Derecho in which she examines the number of possible extensions to the notice of commencement of negotiations under Spanish insolvency law.
The general framework of the Spanish Insolvency Law provides that, after notifying the court of the commencement of negotiations with creditors, the debtor is granted an initial period of three months to negotiate a restructuring plan. This period may be extended for an additional three months if the statutory requirements are met, thereby establishing a general maximum duration of six months for these effects. Although the law expressly contemplates only one extension, certain courts have interpreted that a second extension may be possible in exceptional circumstances, which has sparked debate and led to divergent decisions in current judicial practice.
You can read the full article here.
Access the Spanish version here.
