Company Administration in Case of InsolvencyUpdated on Tuesday 31st January 2017
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Company administration in Spain represents a legal procedure through which a company that has become insolvent can rehabilitate its current condition. In Spain, the company administration procedure is performed following the regulations established under the Insolvency Act. Our team of lawyers in Spain can offer legal advice to the businessmen who are involved in an insolvency case.
What is company administration in Spain?
The main purpose of the company administration procedure in Spain is to protect the respective insolvent company from its creditors. During the company administration, the main purpose is to reorganize the business to such an extent that it can become operational again. This could also lead to starting the restructuring procedure.
Company administration is performed not only for the benefit of the business, but also for the benefit of the creditors, who can obtain through this method a better result than in the case of starting the liquidation procedure.
The company administration in Spain can provide several advantages. It implies lower costs and the procedure can be started by both the representatives of the company, as well as the company’s creditors. Our team of attorneys in Spain can offer more details on the legal aspects related to this procedure.
Administration in Spain
During the company administration procedure in Spain, a judge will establish an insolvency administrator, who will have the main purpose of administering the company’s assets and liabilities.
In case the debtor files for voluntary insolvency proceedings, the company will enter the company administration and will receive an insolvency administrator. However, the debtor will still have the right to perform activities related to the business’ management.
In the situation in which the creditor has started the procedure, the debtor will no longer be able to exercise his or her rights related to the company’s management. The person will be suspended from activity and the function will be performed by an insolvency administrator.
Businessmen interested in receiving more details on the procedure applicable here in case of insolvency are invited to contact our law firm in Spain.