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Tag Archives: Risks and opportunities

“New normal” in Spain: Business crisis and restructuring scenarios: Risks and opportunities. New insolvency rules and EU Directive 2019/1023

The “new normal” requires companies to review their structure and adapt it to the new economic situation: Companies will have to review costs, adapt the way of servicing customers, work, redefine business strategies, perhaps transfer or discontinue some business units with their elements, or start others: structural changes will affect many areas of the organization, including the corporate level, offering advantages of opportunities to grow acquiring companies, assets or business units having to be smart to negotiate with potentially accumulated debt, integrate with other companies or establish strategic joint-venture agreements, etc.

In many cases this crisis will also trigger latent crisis  pre-covid-29, underlying crises that had been brewing in recent years long before the pandemic. Spanish business landscape, extremely fragmented in numerous medium, small and “micro-business” tiny enterprises and self-employed whose small size and “weak financial muscle”, prevents access to markets, financing and business opportunities will be even more vulnerable to this crisis: It is necessary to gain robustness if you want to survive.

Investors, with savings, financial capacity and funds ready to invest, will find investment opportunities in well-planned businesses and projects needing financing to materialize value propositions.

In the midst of the state of alarm, emergency regulations have been issued, including some relating to certain bankruptcy obligations that, after removal of the state of alarm, become relevant.

In the broader framework in our Law there are legal instruments (more and better than in the previous crisis of 2008) that will be useful to tackle new challenges, but they also have requirements that should not be ignored by directors, shareholders and particularly creditors, let’s see:

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