Which solution to choose: restructuring plan, insolvency proceedings or sale of the production unit?
Insolvency proceedings have always been seen as a taboo solution as a business failure, which is a serious mistake.
Juan Antonio Borrás, partner of the Restructuring Department of RocaJunyent, has written this article published in the newspaper Cinco Días, in which he describes the importance of restructuring plans as a key tool to address the crisis of companies in the Insolvency Law. These plans involve agreements between the debtor and its creditors to restructure the debt and avoid insolvency proceedings. Although there have been successes, they are small compared to the number of insolvency proceedings in 2023.
It also argues that the pre-bankruptcy restructuring mechanism is likely to be viable only for medium and large companies, while bankruptcy may be the only option for the rest. However, insolvency is perceived as a business failure, which is a mistake, as it may be the only way to give continuity to the company, especially in cases of debts with public claims, which may be affected in the insolvency.
Access to the full article (available in spanish)
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