The expiry of Spain's temporary accounting relief on 31 December brings corporate financial resilience and recapitalisation capacity into sharper focus. This transition calls for businesses to look beyond the recovery of commercial activity and assess their underlying financial position.
Davinia Sánchez de la Cruz, Managing Partner at Kepler—Karst Law Firm, contributes to an article published by EL PAÍS, entitled “The end of Spain's insolvency shield threatens 80,000 companies”, examining the implications of the expiry of this measure, which has allowed companies to exclude losses incurred in 2020 and 2021 when assessing statutory grounds for dissolution.
Davinia Sánchez emphasises that a recovery in turnover does not necessarily mean that a company's equity position has been restored, drawing particular attention to SMEs, whose more limited recapitalisation capacity warrants closer consideration.
This changing landscape highlights the importance of anticipating capital requirements and assessing financial positions to support informed business decisions with greater legal certainty.
Our thanks to Cinco Días and journalists P. Martín Simón and Nuria Morcillo for including the firm's perspective in their analysis.
Read the full article here:
View the Spanish version.
