Post by account_disabled on Mar 13, 2024 7:02:59 GMT 2
Likewise, it clarifies that during this year dubious regulatory issues have arisen , such as the failure to provide for competitive or concurrent plans, that is, when both the debtor and a group of creditors request the approval of a different restructuring plan. “We consider that an express provision should be introduced in the law, to avoid legal uncertainty,” he points out.
Another issue that has given rise to controversy, in his opinion, is that the current law is allowing restructuring plans to be approved in which a minority imposes a plan on the majority in certain cases, which is producing imbalances in the system . because the plan must be challenged so that the courts can decide whether or not the affected creditors have been unjustifiably harmed.
Regarding Book III of this bankruptcy reform where DJ USA the online procedure for microenterprises is regulated, this expert emphasizes that “the problem is that the platform designed to file these contests without the obligatory presence of the bankruptcy administrator is leaving much to be desired. We hope that little by little it can be fixed, just like the asset liquidation platform for microenterprises, which also does not work well.” In his opinion, this new microenterprise procedure “must be related to the Proposed Directive of December 7, 2022, which provides that the liquidation of microenterprises must be carried out in a simplified process and through electronic auction, so it can be said that the Spanish legislator has gone ahead. The problem is that the system at the moment is not working correctly.”
On the other hand, Escolà has stated that “when the directive is transposed, the scope of application of the microenterprise process must be modified, because it must be increased to companies whose annual turnover or whose annual balance sheet does not exceed two million euros. In the processing of the reform by Law 16/2022, its dimensions were reduced from those initially established in the bill, but when it is transposed it will have to be expanded.”
From his point of view, “in this special procedure it was possible to introduce the figure of the lawyer and attorney in some of the amendments as support for these debtors since there is no bankruptcy administrator unless the parties request it. This is causing problems in practical application, such as in credit classification. Credits must be sorted to see in what order they are paid. If it is going to liquidation, it is the debtor himself who takes care of it, with the help of his lawyer. In the end there are practical application problems that without the advice of the lawyer would be impossible to solve.”
Another issue that has given rise to controversy, in his opinion, is that the current law is allowing restructuring plans to be approved in which a minority imposes a plan on the majority in certain cases, which is producing imbalances in the system . because the plan must be challenged so that the courts can decide whether or not the affected creditors have been unjustifiably harmed.
Regarding Book III of this bankruptcy reform where DJ USA the online procedure for microenterprises is regulated, this expert emphasizes that “the problem is that the platform designed to file these contests without the obligatory presence of the bankruptcy administrator is leaving much to be desired. We hope that little by little it can be fixed, just like the asset liquidation platform for microenterprises, which also does not work well.” In his opinion, this new microenterprise procedure “must be related to the Proposed Directive of December 7, 2022, which provides that the liquidation of microenterprises must be carried out in a simplified process and through electronic auction, so it can be said that the Spanish legislator has gone ahead. The problem is that the system at the moment is not working correctly.”
On the other hand, Escolà has stated that “when the directive is transposed, the scope of application of the microenterprise process must be modified, because it must be increased to companies whose annual turnover or whose annual balance sheet does not exceed two million euros. In the processing of the reform by Law 16/2022, its dimensions were reduced from those initially established in the bill, but when it is transposed it will have to be expanded.”
From his point of view, “in this special procedure it was possible to introduce the figure of the lawyer and attorney in some of the amendments as support for these debtors since there is no bankruptcy administrator unless the parties request it. This is causing problems in practical application, such as in credit classification. Credits must be sorted to see in what order they are paid. If it is going to liquidation, it is the debtor himself who takes care of it, with the help of his lawyer. In the end there are practical application problems that without the advice of the lawyer would be impossible to solve.”