Coronavirus COVID-19

Special Information Briefing COVID-19 (No. 15): Insolvency and corporate measures RDL 16-2020

29/04/2020

We analyse all these measures in this new information briefing.

On 29 April 2020, Royal Decree-law 16/2020 of 28 April, on procedural and organisational measures to address COVID-19 in the area of the Administration of Justice (“RDL 16/2020”) was published in the Official State Bulletin (“BOE”).

Specifically in the area of insolvency, RDL 16/2020 adopts a series of measures that complement those established by Royal Decree-law 11/2020 of 31 March, adopting additional urgent social and economic measures to deal with COVID-19 (“RDL 11/2020”)1, in view of the additional difficulties, arising from the COVID-19 health crisis, affecting the viability of companies.

The purpose of these measures is to temporarily and exceptionally mitigate the consequences of applying the general rules on the dissolution of limited companies and on the declaration of insolvency in the current situation, by avoiding declarations of insolvency or, where appropriate, opening the liquidation phase with regard to companies that could be viable under general market conditions after the COVID 19 crisis has been dealt with, by restructuring their debt, obtaining liquidity and offsetting losses, either through the recovery of their ordinary activity or through access to credit or public aid.

The entire content of the Information Briefing can be found in the PDF.

Related Practice areas

Related news

__More news
Pérez-Llorca uses its own and third-party cookies, located in countries whose legislation does not guarantee an adequate level of data protection, to compile statistics on the use of this service. You can accept or reject the use of cookies by clicking on the buttons at the bottom of this banner and obtain more information about the use of cookies and your rights in our cookies policy.