As opposed to other European jurisdictions or the US, Spanish law does not contemplate the so-called pre-pack sale. This is a tool enabling the negotiation of a sale of all or part of a company’s business or assets with a purchaser prior to the declaration of insolvency of the company, and the insolvency administrator effecting the sale immediately on, or shortly after, the declaration of insolvency of the company (a “pre-pack”).
Consequently, the sale of business units or assets in the context of insolvency proceedings in Spain runs the risk of becoming a long and burdensome process which typically results in a loss of value of the relevant business and/or loss of jobs.
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