act legal Germany responsible for self-administration of Saurer Spinning Solutions GmbH & Co. KG

Sven Tischendorf, in the function of CRO and Alexander Höpfner, functioning as CIO, have been responsible for the self-administration and restructuring of leading global textile machinery manufacturer Saurer Spinning Solutions GmbH & Co. KG since June 16, 2021.

In the course of preparations and the implementation of self-administration proceedings according to § 270 ff, 270 d InsO („protective shield proceedings“), Dr. Sven Tischendorf, MBA (CRO), as well as Dr. Alexander Höpfner (CIO) reinforce the management of Saurer Spinning Solutions GmbH & Co. KG as general representatives, both operationally and as insolvency law experts.

The COVID-19 pandemic and it’s negative effects, in combination with the impact of tariff and trade wars on strongly international supply relationships, had unexpectedly weighed heavily on the business of Saurer Spinning Solutions GmbH & Co. KG. Saurer Spinning Solutions GmbH & Co. KG disposes of considerable substance while maintaining a currently very established order situation. Thanks to the protective shield, business operations can in all respect be continued in an orderly manner, as well as further developed in a sustainable manner.

Saurer Spinning Solutions GmbH & Co. KG

Saurer Spinning Solutions GmbH & Co. KG is a traditional German company founded in 1904. Since July 2013, it has been part of the global technology group Saurer, which is listed on the Shanghai Stock Exchange. With annual sales of approximately EUR 450 million, Saurer Spinning Solutions GmbH & Co. KG employs around 1,200 people at a total of three locations in Germany. Along the various stages of the textile value chain, Saurer Spinning Solutions plays a leading key role in the global market amongst renowned spinning technology brands such as Schlafhorst and Zinser (high-tech components and systems for textile machines) as producers of machines and systems. With the market-renowned self-administration proceedings of Baden-Board, Picard, JMT, Hallhuber and Vossloh-Schwabe, which have already been successfully completed in 2020, the practice led by partners Dr. Sven Tischendorf, MBA and Dr. Alexander Höpfner, as part of act AC Tischendorf, is one of the market leaders in Germany in the area of insolvency and restructuring.

Self-Administration Saurer: act AC Tischendorf Rechtsanwälte, Frankfurt: Dr. Sven Tischendorf, MBA (lead, chief-representative, CRO), Dr. Alexander Höpfner (lead, chief-representative, CIO), Dr. Felix Melzer (handling of proceedings), Dr. Fabian Laugwitz, MBA, LL.M (Commercial)

act legal Germany’s Dr. Alexander Höpfner was appointed as trustee of Transfertex

Dr. Alexander Höpfner was appointed as trustee of Transfertex in self-administration proceedings (protective shield proceedings) by order of the Aschaffenburg Insolvency Court dated May 20, 2021

Transfertex GmbH & Co. Thermodruck KG has been producing environmentally friendly transfer paper for the textile industry since 1970 with the quality claim “Made in Germany” in digital printing and gravure printing and supplies customers worldwide. On the basis of the transfer paper, clothing for well-known fashion labels and sports jerseys, including those for participants in the Football Champions League, are produced from polyester fabrics. By combining digital printing and gravure printing, Transfertex is the only supplier in Germany capable of producing up to 1 million meters of transfer paper in a very short time. Transfertex currently employs 140 people.

The cancellation and postponement of sporting events, such as the Summer Olympics or the European Football Championships, triggered by the COVID-19 pandemic, has led to a massive slump in shirt sales. In the apparel segment for fashion labels, there were serious declines in sales as a result of the textile retail closures caused by the lockdown. The aim of the protective shield and self-administration proceedings granted by the Aschaffenburg Insolvency Court is to safeguard Transfertex’s substance and bridge the lockdown.

After the successfully completed self-administration proceedings of Baden-Board, Picard, JMT, Hallhuber and Vossloh-Schwabe in the last six months alone, the successful insolvency and restructuring practice of act legal Germany led by partners Dr. Sven Tischendorf, MBA and Dr. Alexander Höpfner can further expand act legal Germany’s strong market position in well-known insolvency cases with the appointment of Dr. Alexander Höpfner as administrator of Transfertex.

Dr. Sven Tischendorf, MBA, Dr. Alexander Höpfner and Dr. Felix Melzer ensure profitability and refinancing of the international Vossloh-Schwabe Group within the scope of self-administration proceedings

The Vossloh-Schwabe Group enjoys a tradition of more than 100 years as one of the world’s leading manufacturers and distributors of LED systems, lighting control systems and lighting technology components with subsidiaries in Europe, Asia, Africa and Oceania. Until the end of 2019, the Vossloh-Schwabe Group was part of the Panasonic Group and was sold to the private equity investor Fidelium Partners at the beginning of 2020. With a total of more than 1,000 employees, the Vossloh-Schwabe Group generated sales of EUR 160 million in the fiscal year of 2019.

After the creditors have unanimously approved the insolvency plans submitted by the self-administration on May 03, 2021, the self-administration proceedings (protective shield proceedings), pending since May 2020, will be able to be lifted in the near future. In addition to optimizing the entire production and sales organization, the reorganization carried out in the course of self-administration proceedings likewise comprised of partial plant closures and relocations of operating units. By these measures, the long-term profitability of the entire Vossloh-Schwabe Group is ensured and the permanent existence of jobs is safeguarded.

Fidelium Partners continues to support the Vossloh-Schwabe Group as a shareholder and, as part of the capital measure implemented in the insolvency proceedings, has extensively re-funded the Vossloh-Schwabe Group. Thus, the Vossloh-Schwabe Group is not only fully financed but has also regained its full operational capacity and competitiveness.

After the successful completion of self-administration proceedings of Baden-Board, Picard, JMT and Hallhuber in the past six months alone, act legal Germany’s insolvency and restructuring practice can record a further restructuring success with the Vossloh-Schwabe Group within one of Germany’s market-renowned proceedings.

Self-Administration, Consultancy Vossloh-Schwabe Group: act AC Tischendorf: Dr. Sven Tischendorf, MBA (lead, chief representative, CRO), Dr. Alexander Höpfner (lead, chief representative, CIO), Dr. Felix Melzer (process handling), Dr. Fabian Laugwitz, MBA, LL.M. (supplier management), Dr. Stephan Schwilden, MBA (Employment law), Dr. Nina Honstetter (Employment law)

Flagship mandate: TECHNIPLAS, together with act AC Tischendorf, takes over the business operations and key assets of the publicly listed Nanogate Group out of insolvency

By notarized purchase agreement dated 7 May 2021, TECHNIPLAS is taking over the material assets of Nanogate SE and its insolvent subsidiaries Nanogate Management Services GmbH, Nanogate NRW GmbH, Nanogate PD Systems GmbH and Nanogate Neunkirchen GmbH by way of so-called “asset deals” (transferring restructuring), as well as the equity investments in non-insolvent subsidiaries held by Nanogate SE which are attributable to the core business (including Nanogate heT Engineering GmbH, Nanogate Netherlands B.V., and Nanogate Netherlands B.V.). Nanogate North America LLC, Nanogate heT Engineering GmbH, Nanogate Netherlands B.V., Nanogate Schwäbisch Gmünd GmbH, Nanogate Slovakia s.r.o.) by way of share deals.

The closing of the transaction is still subject to various conditions.

Nanogate, headquartered in Göttelborn, Germany, is a leading technology group that produces design-oriented, multifunctional components and surfaces primarily for the automotive and industrial sectors. The company has an extensive technology portfolio and supplies major international customers worldwide (e.g. Airbus, BMW, Daimler, Ford, GM and the VW Group). The 22 group companies are active at ten locations in seven countries; Nanogate SE shares are traded in the scale segment of Deutsche Börse Frankfurt. In 2019, Nanogate generated sales of approximately EUR 243 million with around 1,800 employees. On 22 June 2020, the management filed for insolvency in self-administration pursuant to Section 270b InsO (protective shield proceedings) for Nanogate SE as well as five German subsidiaries. All other companies in the group continued to operate as solvent entities.

TECHNIPLAS is a global supplier of advanced plastic components, primarily for the automotive sector, but also for industrial, consumer goods, medical and other markets. The group was founded in 1941 and today generates sales of around USD 500 million at ten locations. The sustainable growth course is supported by the shareholders H.I.G Capital, Amzak Capital Management and The Jordan Company.


act legal Germany is trusted advisor to many well-known private equity funds and their portfolio companies, especially in the areas of distressed M&A and restructuring. There is a long-standing relationship with H.I.G. Capital. act legal Germany has already advised on several transactions for TECHNIPLAS in the past. In addition to the transaction management in Germany, act legal Germany’s office was also responsible for the overall international management of the legal aspects of the transaction, for which it was able to draw on the support of numerous other act legal offices.

Legal advisors TECHNIPLAS

act legal Germany – AC Tischendorf Rechtsanwälte (Lead management, transaction advice and documentation): Dr. Sven Tischendorf, MBA (M&A, insolvency law, labor law), Dr. Matthias Müller, MBA (M&A, Corporate, insolvency law), Dr. Fabian Brocke, LLM. (Transaction documentation, management due diligence worldwide), Dr. Stephan Schwilden (labor law, antitrust law), Dr. Florian Wäßle (IP / IT), Marcus Columbu (Finance), Dr. Fabian Laugwitz LL.M., MBA (Real Estate), Sarah Landsberg (Corporate, M&A)

act legal Austria – WMWP (Austrian transaction aspects): Dr. Martin Wiedenbauer, Mag. Franz Asseg

act legal Slovakia – act MPH (Slovak transaction aspects): Mgr. Jana Alušíková, Mgr. Zuzana Jahodníková, LL.M., Mgr. et Mgr. Katarína Kasalová

act legal The Netherlands – act FORT (Dutch transaction aspects): Derk van Geel, Terry Steffens, Elias van Kampen

LAWorld – Nexsen Pruet (US transaction aspects): Todd Davidson, Mark W. Bakker

LAWorld – Nordia (Finnish transaction aspects): Matti Kari, Annamarie Männikkö

LAWorld – Özkan (Turkish transaction aspects): Zeynep Özkan Özeren

Flick Gocke Schaumburg (Taxes and tax structure): Christian Schatz, Corina Hackbarth, Anne-Catharine Lorek, LL.M.

act AC Tischendorf, Gerloff Liebler and K&L Gates successfully secure HALLHUBER’s path out of self-administration via insolvency plan into a successful future after the lockdown

The well-known German fashion company Hallhuber GmbH (“Hallhuber“) successfully completes the self-administration proceedings (protective shield proceedings) ongoing since April 2020 via an insolvency plan and is once again fully operational and competitive. 

The creditors unanimously approved the insolvency plan submitted by the self-administration on 11 May 2021. Today also secures the long-term continuation of around 1,100 jobs and the sustainable existence of one of the well-known landmarks in almost all major German city centres. 

Hallhuber is one of the most prominent German fashion companies with currently 1,100 employees, 380 stores and retail spaces in Germany, Austria, Switzerland, Benelux and other European countries as well as its own online platforms in Germany, Austria, Switzerland and France. In the financial year 2019, Hallhuber achieved sales of around EUR 200 million. The significant challenge in recent months was to manage two lockdowns due to the COVID-19 pandemic from a business and legal perspective. After Hallhuber was unable to receive state aid due to the insolvency petition filed, Hallhuber put itself into a kind of “hibernation” and thus entered new legal territory. This also includes the unanimous adoption of a so-called insolvency plan for insufficiency of assets in accordance with § 210a InsO (German Insolvency Code) by the creditors (of old debts incumbent on the estate), which made the current prospects and continuation of operations possible in the first place and is likely unique in Germany on this scale.

The success of the self-administration procedure is not only due to the courageous decision-making but also to the unparalleled solidarity of all Hallhuber’s important stakeholders in Germany – financiers, landlords, suppliers, employees and, last but not least, Hallhuber’s loyal customer base. The previous Hallhuber financiers, Robus Capital and CSP, will continue to provide Hallhuber with committed and lasting support. Based on the insolvency plan, which provides for a capital cut, the managing directors of Hallhuber, Rouven Angermann and Torsten Eisenkolb, have acquired shares and are new shareholders of Hallhuber. 

Self-administration, advisors Hallhuber: act AC Tischendorf, Dr. Sven Tischendorf, MBA (lead, general representative, CRO), Dr. Alexander Höpfner (lead, general representative, CIO), Dr. Felix Melzer (litigation), Dr. Tara Kamiyar-Müller, (real estate law), Dr. Matthias Müller, MBA (transaction negotiation) Dr. Stephan Schwilden, MBA (labour law), Dr. Nina Bogenschütz (labour law), Dr. Fabian Laugwitz, MBA, LL.M. (commercial)

act legal Germany ranked as “Top Employer 2021 in Insolvency & Restructuring”

“Only a few law firms have such satisfied lawyers, and only a few achieve a share of women of 50 per cent” – azur Karriere has again ranked us among the 100 top employers for young lawyers.

Read more about it on act legal Germany’s LinkedIn profile.

Ministry of Justice announces simplified restructuring procedure

In response to act BSWW’s request for legislative actions, the Ministry of Justice has announced that it is working on a simplified restructuring procedure for enterprises.

At the onset of the epidemic, act BSWW asked the Ministry of Justice to suspend the obligation to submit bankruptcy petitions. This solution was included in the Anti-Crisis Shield 2.0. However, it was somewhat different from our recommendations. Last Friday, we received an official response to our legislative suggestions. The Ministry explained why it had not decided to suspend the declaration of bankruptcy upon the creditor’s request in case the debtor’s insolvency is caused by COVID-19. The Ministry believes that the best way to ensure protection against the creditor’s motion for declaration of bankruptcy is the debtor’s submission of a restructuring application. In case of concurrence of the bankruptcy and restructuring petitions, the latter is generally considered to prevail. However, the situation is far from simple here.

Unfortunately, the current restructuring procedure is not adjusted to mass insolvencies that we are witnessing right now. Courts were not keeping pace with demand even before the epidemic, when the number of incoming petitions was usual. The period between the submission of a restructuring application and the opening of proceedings or the creditors’ meeting (aimed at voting on arrangement) was often so long that the company was losing the ability to perform the arrangement and was left with no other option than bankruptcy. If all enterprises suffering from financial difficulties submitted restructuring applications now, courts would get stuck for years. It would be advisable to simplify the regulations, making it possible for courts to open restructuring proceedings almost automatically. Also, the restructuring procedure is expensive and (subject to some exceptions) can be afforded primarily by large enterprises that have sufficient resources to pay the costs. In practice, the enterprise should have over PLN 100,000 assigned for costs alone. Of course, the exact amount depends on the specific circumstances of a given case. The fee of an administrator in remedial proceedings varies from approx. PLN 15,000 (extremely rare in practice) to over PLN 1 million. It is strongly recommended to introduce regulations minimizing those costs. Additionally, preparation of the restructuring application, all appendices and the initial restructuring plan is time-consuming and complicated. The procedure should be streamlined.

In its letter, the Ministry mentioned that it was working on legal amendments to make it possible to conduct restructuring procedures during the state of epidemic and over a limited period after its end, using a simplified procedure. This is very good news. What we need is a simple, quick and comprehensible procedure that would allow businesses to recover from the epidemic-induced crisis. Hopefully, the new regulations will indeed make restructuring procedures much more accessible.

Please feel free to contact us for any questions you might have.

New Insolvency Rules Resulting from the COVID-19 Pandemic

The current unusual situation caused by the COVID-19 pandemic will undoubtedly have substantial consequences for the economy of the Czech Republic. It can be expected that the amount of debts will rise sharply not only on the side of the state, but also on the side of citizens and business entities. Subsequently, many of these debts are not going to be repaid. Therefore, such debts will be claimed before the courts and other competent authorities sooner or later and subsequently enforced (either individually through enforcement proceedings or collectively through insolvency proceedings).

The current emergency may thus lead to the bankruptcy of many entrepreneurs, both in the form of insolvency and in the form of over-indebtedness. In spite of the current extraordinary situation, entrepreneurs are still obliged to file an insolvency petition without undue delay after they have learned of their insolvency or should have learned about it exercising due care. This obligation is also not affected by the fact that the insolvency could have been caused by the current emergency and it could be expected that the debtor will be able to recover from the inability to pay its debts in the near future (the so-called temporary insolvency). This puts many entrepreneurs at considerable risk, as their personal property may also be at stake. Failure to file the insolvency petition creates the liability of these persons (including members of the statutory body) for damages.

On March 31, 2020, the Government of the Czech Republic tried to mitigate the negative consequences of the COVID-19 pandemic on the economic situation of citizens and entrepreneurs by passing a bill (adopting draft legislation) to amend, inter alia, the Insolvency Act and the Act on Private Enforcement Procedure (hereinafter referred to as the “Amendment”). The Czech Republic thus follows the countries such as Germany or Spain which have already adopted certain changes to their enforcement or insolvency regulations.

The most important proposed changes to the Czech insolvency law can be summarized as follows:

1.Limitation of the obligation of entrepreneurs to file debtor insolvency petitions: A new rule is introduced for entrepreneurs not being obliged to file a debtor insolvency petition within the period from the effective date of the Amendment until 6 months from the termination or cancellation of an emergency anti-epidemic measures (but no later than by December 31, 2020). An exception to this rule exists when (i) the insolvency occurred even before an emergency anti-epidemic measure was adopted, or (ii) the insolvency was not mostly caused by the emergency anti-epidemic measure that would make it impossible or substantially difficult for the debtor to fulfil its payment obligations.

2. Limitation of creditor insolvency petitions: Creditor insolvency petitions filed from the effective date of the Amendment till August 31, 2020 will not be taken into account. Thus, there is a legal fiction that no such insolvency petition will have been filed. Therefore, such filing will not even be published in the insolvency register. The purpose of this measure is, inter alia, to prevent the debtor from spending money to defend against a creditor’s insolvency petition. However, the creditors will still be entitled to exercise their civil-law rights (e.g. by offsetting or enforcing a collateral), in court proceedings or out of court. [1] This measure – unlike the limitation of the obligation of entrepreneurs to file debtor’s insolvency petitions – affects all debtors (i.e. not only entrepreneurs) and regardless of why and when the insolvency occurred.

3. Introducing an extraordinary moratorium: The Amendment establishes the rule that a debtor who is an entrepreneur and who has not been in bankruptcy at the date of March 12, 2020 can file a request for a so-called extraordinary moratorium by August 31, 2020. The effect of the moratorium is that: (i) the debtor cannot be declared insolvent for the duration of the moratorium, (ii) the debts required to maintain the debtor’s enterprise that arise after the extraordinary moratorium is introduced can be paid by the debtor during the moratorium preferentially, before previously due liabilities are met and (iii) the time limits for exercising rights against the debtor for the duration of the extraordinary moratorium neither commence nor continue to run. The debtor may file a motion for a moratorium order even before the filing of an insolvency petition and the commencement of the insolvency proceedings. In addition, unlike the current “normal” moratorium, the proposal for an extraordinary moratorium does not need to be approved by the majority of the debtor’s creditors.

4. Suspension of performance of a reorganization plan: A debtor whose reorganization plan has been legitimately (finally) approved as of March 12, 2020 at the latest is entitled to propose to the insolvency court to state that the debtor is entitled to temporarily suspend performance of the reorganization plan (provided that the plan has not yet been fully fulfilled). The performance of the reorganization plan may be interrupted for the period of time during which the obligation of entrepreneurs to file debtor’s insolvency petitions is to be limited (see section 2 above). During the said period, it will not be possible to convert reorganization into bankruptcy (i.e. the liquidating way of the bankruptcy solution). However, the insolvency trustee and the creditor committee must comment on the debtor’s proposal to suspend the reorganization plan.

5. Discontinuation of time limits for relative ineffectiveness of legal acts: During the period of limitation of the obligation of entrepreneurs to file debtor’s insolvency petitions (see section 2 above), time limits for objections to relative ineffectiveness of legal acts should be suspended. By claiming ineffectiveness of a legal act, creditors can defend themselves within the statutory time limit against legal acts of the debtor that jeopardize the payment of their enforceable claim. When the measures described above provide special protection to the debtor, it is equally fair, during the period of such emergency measures, to discontinue the time limits for creditors within which they can defend themselves against the debtor’s prejudicing acts. Nevertheless, it is recommended that creditors should, even during the state of emergency, carefully monitor changes in the structure of their debtors’ assets (e.g. in the land registry) so that they can effectively defend themselves against any prejudicing disposal of the debtor’s assets.

The Government proposes that the Amendment is to be discussed by both chambers of the Parliament of the Czech Republic in an abbreviated procedure. Therefore, it can be expected that the Amendment may be passed in a few days. However, before the described changes to insolvency law become effective, entrepreneurs still have the obligation (i) to perform the so-called insolvency test and (ii) to file a debtor’s insolvency petition without delay after the defined prerequisites of insolvency are met. Failure to comply with this obligation may have far-reaching consequences not only for the legal entity, but also for the members of its statutory body, consisting mainly in incurring liability for damage caused thereby.

We would like to assure you that we have extensive practical experience with insolvency law, from the point of creditors and debtors (and their statutory bodies). We also continuously monitor the current changes in Czech insolvency law. Please feel free to contact us if you have any questions regarding the above.

At the same time, we are ready to provide you with comprehensive legal advice on imminent or already existing bankruptcy situation (if any) and solutions thereto under insolvency law, including protection against personal liability of members of statutory bodies of legal entities. Such advice can be provided in connection with your (imminent) bankruptcy situation, but also in the case of bankruptcy of your contractual partners (either suppliers or customers). Should you decide to enforce your receivables in a different manner than by insolvency, we will be happy to propose the best solution for you and to provide you with comprehensive legal representation. If you are in danger of bankruptcy as a result of the crisis-related measures of the Government of the Czech Republic, we are ready to provide you with comprehensive legal advice regarding claiming damages towards the state. [2]

At the same time, insolvency can be an opportunity to expand your business activities, for example by buying a debtor’s enterprise. We also have considerable experience with insolvency acquisitions and, therefore, we can provide you with the necessary assistance in this regard.

[1] For out-of-court dispute resolution options at the time of the coronavirus epidemic, see the ŘANDA HAVEL LEGAL newsletter called “Impact of the COVID-19 Epidemic on Dispute Resolution” that is available here:

[2] For the possibility of claiming compensation from the State for crisis measures, see the ŘANDA HAVEL LEGAL newsletter on “Recent Developments in the Matter of State Liability for Damage in Connection with Measures in Crisis” that is available here:

Further relief for companies affected by COVID-19: Germany adopts suspension of the statutory obligation to file for insolvency!

In order to mitigate the economic impact of the spreading SARS CoV-2 virus (“COVID 19 Pandemic”), the German government has introduced a protective shield for companies in crisis, which, in addition to short-time work benefits and tax deferrals, also provides for an unlimited credit line from the Kreditanstalt für Wiederaufbau (“KfW”).

As an accompanying measure, the German legislative bodies additionally now adopted a temporary suspension of the obligation to file for insolvency, since due to organizational and administrative reasons stemming from the approval process it cannot be guaranteed that such government aid will reach the affected companies in time. As a direct legal consequence, the management of such companies might be legally obligated to file for insolvency on behalf of the company in the meantime if over-indebtedness or insolvency occurs. This welcome suspension of such obligation will give companies that have fallen into economic difficulties as a result of Covid-19 more time to survive the crisis without necessarily having to file for insolvency.

1.Which companies are exempt?

Prerequisites for the suspension of the obligation to file for insolvency are that  

  • the insolvency or over-indebtedness is caused by the consequences of the COVID 19 pandemic, and
  • there are reasonable prospects of eliminating the existing insolvency.

However, these prerequisites are legally considered to be met if the company concerned had not already been insolvent on 31 December 2019.

2. What does “suspension of the obligation to file for insolvency” mean exactly?

If these prerequisites are met, the persons normally obligated to file for insolvency pursuant to section 15a of the German Insolvency Code (e.g. the managing directors of a limited liability company) are temporarily not required to do so during the suspension period. If the crisis of the company is not averted even after the end of the suspension period, the regular 3-week period to file for insolvency starts to run again.

3. How long does this suspension apply?

The suspension applies retroactively from 1 March 2020 and for the time being until 30 September 2020 but may be extended by the Federal Government until 31 March 2021.

We will keep you updated!

Article 43 of RD-Law 8/2020, of 17 March, on extraordinary urgent measures to face the economic and social impact of COVID-19

Article 43 of RD-Law 8/2020, of 17 March, on extraordinary urgent measures to face the economic and social impact of COVID-19, modifies the deadlines set by the Spanish Bankruptcy Act to request a declaration of bankruptcy.

Current legislation

Article 5 of the Spanish Bankruptcy Act specifies the debtor (be it a natural or legal person) must file for bankruptcy within two months since becoming aware of the situation. This realization will be deemed to exist when one of the following situations occurs:

  1. The general cessation of obligation-related payments.
  2. Seizures or repossessions that generally affect the debtor’s equity.
  3. Ruinous clearance or asset stripping.
  4. The non-payment, during the last three months, of tax obligations, social security contributions and labor debts.

The consequences of not meeting the obligation to request a bankruptcy declaration within the deadlines set are that, in the event the debtor is finally declared bankrupt, said person can be blamed for the situation. As a result, the members of the board may be banned from exercising these duties again and can be made personally responsible for the company’s debts (whether partially or totally).

Extraordinary regulations

The RD-Law suspends, while the state of alarm is in force, the need to request a declaration of bankruptcy (even if the conditions that make such request compulsory are met). The norm, however, does not clarify if, once the state of alarm is over, a new two-month period is launched in which to submit that request or whether said period needs to be calculated on the basis of the time lapsed until the Royal Decree-Law entered into force.

The new norm, however, does specify that new requests for bankruptcy declarations will not be processed by judges (even if the debtor is insolvent) for as long as the state of alarm lasts plus the two following months. If the debtor requested a voluntary insolvency process after an involuntary process was launched, the voluntary request will be processed first.

The RD-Law does not prevent any voluntary insolvency requests from being filed while the state of alarm is in force but notes that their processing will be suspended for as long as it lasts.

If the debtor was already in the first stages of an insolvency situation (article 5 bis of the Spanish Bankruptcy Act), the RD-Law suspends, while the state of alarm is in force, the obligation to request a declaration of bankruptcy if, within the four-month period specified by the Bankruptcy Act, no agreement is reached or the number of necessary endorsements has not been obtained to process an early agreement proposal.