Under Spanish law, ins lvency proceedings have three main stages (please note, however, that completion of all of these stages is not compulsory in all cases):
The common stage, is used to identify the assets and liabilities of the insolvent company;
The creditors’ arrangement stage is for the debtor, through the acceptance of haircuts, deferrals or other conditions (e.g. debt capitalization) to be able to continue its activity and repay the outstanding debts; and
The liquidation stage is the stage in which the company is extinguished and its assets sold (creditors will be repaid the maximum possible amount with the price of the sale).