Under recent proposals, Spanish companies will be able to extend maturities on bank loans, negotiate haircuts, arrange debt-for-equity swaps and reduce the majority needed for creditor agreements to be approved. The new regime represents a watershed for the Spanish restructuring market.
Deputy prime minister Soraya Saenz de Santamaria, speaking to reporters in Madrid after a weekly cabinet meeting, confirmed the decree had been passed, adding: “It’s so that the bankruptcy laws don’t place obstacles in the way of refinancing companies that are perfectly viable despite their debts.”
