Proceedings from the Courts’ seminar on the homologation of refinancing agreements clarify some material uncertainties.*

Background -

As a result of a recent seminar, the Catalonian Mercantile Courts have reached a common understanding (the Conclusions) regarding, among other issues, current controversial insolvency issues related to the Homologation of Refinancing Agreements. Notably, although the seminar proceedings expressly states that the Conclusions do not pretend to impose on the Catalonian Mercantile Courts any specific doctrine, the courts articulate their intent to respect the Conclusions — provided that they apply in the relevant case. Furthermore, the proceedings aim to present insolvency receivers with a reasonable legal solution to issues related to the Fourth Additional Provision of the Spanish Insolvency Law (the AP4) as recently amended by means of Law 14/2013, 27 September on support for entrepreneurs.

Maturity extensions and moratorium on enforcement under the AP4 -

The Conclusions regarding the maturity extensions and moratorium on enforcement are (i) the three-­year maximum period limit set out in the AP4 refers solely to enforcement actions sought by financial creditors and not to maturity extensions stated in the refinancing agreement and (ii) the moratorium enforcement of any type sought by financial creditors may be imposed on any financial creditor even if they are secured...