Obstruction of refinancing agreements and at-fault classification of insolvency proceedings

In the context of insolvency proceedings, Spanish law does not allow the adoption of measures that affect the insolvent’s governing body and capital structure, however necessary these measures may be to achieve corporate reorganisation (e.g., compulsory appointment or termination of appointment of company directors, expulsion of shareholders, court-ordered debt capitalisation, etc.). This is due to the nature of the rules that shape such law, which only fall on the company’s assets and liabilities and only affect the holder of the same as far as necessary to achieve their goal…