Our Managing Partner Davinia Sánchez and our Of Counsel Rodrigo Olivares-Caminal spoke with El Confidencial about the wave of restructuring expected, the bankrupcy moratorium and the ICO credits, which are endorsed by the Administration.
For our experts, there are doubts about the ICO credits due to the fundamental role they play in any restructuring. They are a crucial element when approving creditors' agreements within the framework of insolvency proceedings to avoid liquidation, because through them and its endorsement, the public administration is now involved in the process. "When the public administration is involved in the process, as in this case through the endorsement of the ICOs, it decides whether or not to adhere to these agreements, and the public administration is not exactly known for its support of them. This also applies to companies seeking to restructure (without going into a bankruptcy process) that have applied for an ICO loan. In these cases, if the Administration does not change its usual dynamics, restructuring will not be an option for companies, and they will end up going through a hard insolvency process and thus liquidation.", explains Davinia Sánchez.
Undoubtedly, as the article indicates, the economy will endure a major test with the gradual withdrawal of the fiscal and monetary support that prevented the collapse when the pandemic was at its highest, and one of the key elements now will be the examination of the solvency of companies. Banks and law firms are preparing for a wave of restructurings and refinancings in large companies.
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