The new measures seek to overcome the expected high rate of insolvency, refinancing, and corporate disputes arising from the COVID-19 crisis.

The Spanish government approved Royal Decree-Law 16/2020 on 28 April, which adopts several measures in the insolvency, refinancing, corporate, and procedural fields to address the high rate of disputes and financial difficulties that are expected due to the COVID-19 crisis. The purpose of these measures is twofold: (i) avoiding the collapse of the Spanish legal system upon the reopening of courts and (ii) ensuring the economic feasibility and access to liquidity of companies that, under standard market conditions, would not be facing insolvency scenarios.