The €33 billion in ICO-backed loans expiring in 2028 have become one of the main challenges for corporate restructurings in Spain. The inability to extend these maturities without express authorisation from the Spanish Tax Agency (AEAT) is complicating many refinancing and restructuring processes, particularly for companies with high post-pandemic debt exposure.
As reported by Cinco Días, law firms specialising in restructuring are exploring alternative legal mechanisms within the insolvency framework to achieve sustainable agreements without losing the public guarantee — a test for both the flexibility and effectiveness of the current system.
In this context, Davinia Sánchez, Managing Partner at Kepler-Karst law Firm, and Malena Vila, Associate in the Corporate Department, note that “the remaining debt tends to be concentrated in the most vulnerable companies.” They add that the true impact of the pandemic “is no longer measured by the volume of credit granted, but by the actual ability of exposed businesses to repay it.”
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Read the Spanish article here.
