For Spanish firms, the future economic forecasts for the coming months will continue to be complex. On June 30, the bankruptcy moratorium came to an end after two years and several extensions after its implementation.
The government implemented this measure in order to reduce the damage caused to businesses by the epidemic; however, as a result of its numerous extensions, it has created a pool of businesses in a position of insolvency without processing the action.
After the end of the moratorium, it is very probable that most of these firms will seek bankruptcy proceedings, which might add to the court workload.
From the Abencys office, a legal practice specializing in insolvency and restructuring, it is noted that, despite having tried to continue their activities protected by the moratorium that exempted them from the obligation to present competition, they have yet to be able to enter bankruptcy proceedings with a unfeasible situation and serious injury, a factor that, according to firm experts, favors liquidations.
According to Luis Martn, this scenario will result in a constant drop of contest requests in the coming months, which will pick up speed from this month of September and will likely continue until the end of the year. "Exempting firms in difficulty from entering bankruptcy has only increased, and thus worsened their delicate situation, since submitting bankruptcy on time is a major component of ensuring the company's survival."
The recent announcement of the new bankruptcy law as the two most noteworthy milestones within the sector in recent months
According to Luis Martn, Abencys' partner, "the foreseeable economic situation of recession, as well as more than two consecutive quarters with a decrease in the economy, will favor the liquidation of firms."