The ruling of commercial court NO. 6 of Barcelona, dated 5 JUNE 2012

Pre-insolvency mechanisms aimed at the restructuring of companies in distress as an alternative to formal insolvency proceedings have been a critical feature of the reforms of the Spanish Insolvency Act carried out since 2009.
Among the elements introduced by such amendments of the insolvency act, the requirements to obtain the judicial homologation of a refinancing agreement and hence to extend the effects of that agreement to dissident creditors3 has been the subject of numerous interpretations (and speculation) by lawyers involved in debt restructuring transactions.
The ruling of Commercial Court No. 6 of Barcelona, dated 5 June 2012 on the first request for homologation carried out under additional disposition nº 4 of the insolvency act by Santa &amp, Cole Neoseries, S.L. and Intramundana, S.A. has brought some clarity (and yet introduced important grounds of concern to credit providers and other participants in the debt trading industry) to the legal requirements of the homologation.