Third National Meeting of Professional Associations: Pre-Bankruptcy Restructuring

The legal uncertainty stemming from differing interpretive approaches to restructuring was one of the issues addressed at the Third National Meeting of Bar Associations’ Commercial and Bankruptcy Law Sections, held in La Coruña.

In this context, José Carlos González, a partner specializing in restructuring and insolvency, analyzes in Law and Trends the main issues discussed at the roundtable on pre-bankruptcy restructuring and highlights “the legal uncertainty that the disparity in interpretive criteria on core issues of the legal framework is causing among market participants.” He also points out “the advisability of introducing an appeal in the interest of the law for the sole purpose of unifying legal doctrine.”

Among the issues discussed was the role of the restructuring expert, with emphasis placed on “the need to appoint an expert in all cases involving a non-consensual restructuring plan.” Furthermore, regarding judicial review during the approval process, the trend “toward more rigorous and substantive or material review” was highlighted.

In short, the meeting provided an opportunity to highlight “the many strengths of our preventive restructuring model, which is yielding highly commendable practical results,” as well as certain aspects that still require further interpretive clarification.