Clifford Chance

Spanish insolvency reforms: Claims are now more saleable in formal insolvencies

7 November 2014

New legislation in Spain now allows claims in an insolvency to be sold with the benefit of voting rights. Iñigo Villoria, Head of the restructuring and insolvency practice in Spain, comments: "This is a complete turnaround from the legislator's original position. Generally speaking, since 2004 any sale of claims in insolvency left the purchaser without any voting rights in the insolvency process. This has meant that the value in the claims was limited to their face value in a distribution. The new legislation potentially enhances that value, as purchasers are now able to acquire not just the claim, but the voting rights too. This recognises the enhanced value in the trading of those claims and is great news for the Spanish market."

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