INSOLVENCY

In our present capitalist society, companies are frequently overtaken by financial or business crises that render their continuing existence as a going concern doubtful or unfeasible unless certain measures are taken.

At this point, the delicate situation arises of ascertaining whether or not the business is viable at all, and what steps might be taken to ensure that it may continue, or be liquidated in an orderly way.

Current laws and regulations compel the business owner to apply for a declaration of voluntary insolvency proceedings if the business is unable to honour its obligations.

Voluntary insolvency is designed to achieve either one of two different goals: either continuity of the business by means of reaching agreement with creditors, or orderly liquidation under the supervision of the courts.

Business owners and directors are naturally concerned as to whether or not they will be personally liable for the debts of the company owed to general creditors and banks, the Social Security authority, the revenue authority and other government bodies.

For many years, CENTELL-FOLCH ABOGADOS ASOCIADOS has defended business owners and directors by examining the specific crisis affecting their business and its implications for the personal wealth of the business owners or directors, proposing and carrying through optimal solutions to resolve these situations.

Our departments of commercial, corporate, procedural, labour and tax law accordingly examine each specific case and work together to identify and propose solutions, offering our clients the following services: analysis of the economic situation; review of accounts; proposal of pre-insolvency solutions; and preparation, submission and processing of applications for voluntary insolvency and litigious defence at the characterisation stage of insolvency proceedings.

We also defend our clients’ interests when they are the creditors of another company, seeking to identify the swiftest, safest and cheapest ways collect on their claims and, as required, submitting petitions of insolvency. If the debtor has already applied for voluntary insolvency, we notify our clients’ claims and ensure that they are included in the list of creditors, advising on any procedural steps and formalities arising in the insolvency proceedings and on any proposed arrangement issuing from the debtor or other creditors, and on their situation in any liquidation of the debtor’s assets. We also consider and propose any individual actions that might lie against the directors of the debtor company.