INSOLVENCY · INSOLVENCY PROCEEDINGS

The sooner a business crisis is addressed, the more options it offers. At Welllaw we advise companies, their directors and their shareholders in situations of likely insolvency and insolvency: from the initial assessment and the sale of business units, before or during insolvency proceedings, to the insolvency filing and the classification stage.

Our insolvency team works hand in hand with the firm’s other practice areas. This overall perspective allows us to act quickly, preserve the value of the business, protect the position of its directors and negotiate with all creditors through a single point of contact.

We act before the commercial courts throughout Spain, with a particular presence in Malaga, the rest of Andalusia and Madrid, in Spanish and English.

These are our insolvency services:

Sale of business units and pre-pack

  • Pre-pack: preparing the sale before insolvency proceedings are opened and completing a swift transfer once insolvency has been declared.
  • Sale of business units in insolvency proceedings: competitive process, assumption of contracts and employment relationships, and cancellation of encumbrances.
  • Preparation of the binding offer and the liquidation plan.
  • Defining the scope of the business unit and the employment consequences of the transfer.
  • Coordination with the insolvency administrator or the appointed expert and with the court.

Assessment and prevention of insolvency

  • Analysis of the financial and asset position: likely, imminent or actual insolvency.
  • Directors’ duties in the face of insolvency: filing for insolvency on time and preventing liability risks and a finding of culpable insolvency.
  • Review of previous transactions from the perspective of clawback and the classification of the insolvency.
  • Notification of the opening of negotiations with creditors, to protect the company while the insolvency filing or the sale is being prepared.
  • Cash-flow plan and immediate measures to preserve business continuity.

Insolvency filing and debtor defence

  • Preparation of the voluntary insolvency petition: report, inventory, list of creditors and company documentation.
  • Choosing when to file, to protect the company and its directors.
  • Opposition to involuntary insolvency petitions.
  • Legal representation of the debtor at every stage: assets and liabilities, creditors’ agreement and liquidation.
  • Creditors’ agreement proposals and liquidation plans.
  • Special procedure for micro-enterprises.
  • Dealings with the insolvency administrator and the creditors.

Classification of the insolvency

  • Defence of directors, liquidators, general attorneys and shareholders in the classification section, against the insolvency administrator’s report and the Public Prosecutor’s opinion.
  • Opposition to a finding of culpable insolvency: presumptions of culpability, causation and wilful misconduct or gross negligence.
  • Defence of affected persons and accomplices: disqualification, loss of rights, return of assets and compensation for damages.
  • Orders to cover the insolvency deficit: opposition and quantification.
  • Appeals against the classification judgment.
  • Defence against insolvency clawback actions and liability actions against directors and for company debts.

How we work

  • Assessment. We analyse the company’s situation and tell you clearly what options you have and within what timeframes.
  • Strategy. We choose the route with you: pre-pack, sale of the business unit within insolvency proceedings, or insolvency proceedings.
  • Preparation. Company documentation, offer and insolvency petition.
  • Proceedings. We manage the insolvency proceedings through to the sale, the creditors’ agreement or liquidation.
  • Classification. Defence of directors and shareholders.

Head of practice

Hortensia Laqué Rupérez, partner at Welllaw, head of the Litigation and Insolvency practices and member of the Malaga Bar Association (no. 5618), leads the insolvency practice and specialises in the sale of business units before and during insolvency proceedings. She was the first independent expert appointed by a commercial court in Andalusia in a pre-pack sale of a business unit, by Commercial Court No. 2 of Malaga, and is recognised by Best Lawyers® in Insolvency and Reorganization Law. She is a member of the Insolvency Law Section of the Malaga Bar Association. Welllaw is ranked Tier 2 in Malaga for Insolvency and Reorganization Law in Best Law Firms® – Spain 2027.

Is your company going through difficulties? Call us on +34 952 225 199 or write to us through our contact form.