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25 Apr 2010 00:00 by redman Star rating. 234 forum posts Send private message

Inside the concurso de acreedores there are three different ways to reach a solution

The ‘Pre-packaged Plan’ (Convenio anticipado)
This is the preferred restructuring solution. It consists of an agreement reached initially by the debtor and creditors owed at least 20 per cent of the company’s liability. This agreement must include the continuation of the business and can be proposed to the rest of the creditors from the start of proceedings (together with the insolvency petition) or in the weeks thereafter. There are no legal constraints to the proposal of such a plan and it is applicable to all sorts of restructuring operations: debt cancellation, exchanges of debt for equity, and mergers. It is also the cheapest possible route for a restructuring, since it reduces drastically the duration of the insolvency procedure. The plan must be approved by creditors representing the majority of the debt. Since it is considered to be a benefit for the debtor, a ‘pre-packaged plan’ can ony be proposed – and later approved – if the company (and its directors) have behaved ‘properly’ in the market during the previous years.

The ‘Insolvency Plan’ (Convenio ordinario)
If no pre-packaged plan is submitted, there is still one last chance for an agreed solution to the insolvency: the ordinary ‘Plan’. This solution, very similar to Germany’s Insolvenzplan, is less attractive. It has legal restrictions: for instance, there cannot be a debt cancellation beyond 50 per cent or a payment adjournment longer than five years. Although the opportunities for reorganising or rescuing the business as a going concern are the same as for a Pre-packaged Plan, the Insolvency Plan takes longer to put into effect and is more costly. This Plan also implies the continuation of the business and can give effect to numerous restructuring operations involving third parties. The Plan can be voted by ordinary creditors. Sub-ordinated creditors do not have the right to vote (even though they are affected by the Plan). Privileged creditors can stay out of the Plan (and, therefore, they would not be affected by it), but they can also vote in favour and bind themselves. This later option only happens when the privileged creditor takes an active role in the rescuing of the business (and is not just a creditor that sits up and waits for re-designed activity of the company to generate enough cash to repay its debt as the Plan says).

Winding up (Liquidación)
It is legally considered the ‘last solution’. However, the IA 2004 has made a considerable effort to design a winding up system that captures the real value of the company. Unlike Spain’s former Insolvency Law, winding up in this new law moves the process away from a liquidation on a break up basis (traditionally a way to destroy value), and requires the sale of the business (or part of it) as a going concern. It is about ‘liquidating the debtor (company), not the business’. In a liquidation, the liquidator is given a free rein to obtain the best price reasonably possible for the business. The liquidator must draft a ‘Liquidation Plan’, that need not be approved by the debtor or the creditors. It is purely a technical decision taken by three ‘experts’. Third parties must be included in the picture. Usually, liquidators create subsidiaries and transfer the viable parts of the businesses to those subsidiaries. They will then sell the subsidiaries (by means of an auction or by direct sale). If a liquidation takes place within the concurso de acreedores, Directors who have breached their duties to the company may face disqualification and have personal liability for the company’s debts.




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26 Apr 2010 13:10 by dub123 Star rating. 4 forum posts Send private message

 

 

Hi There, I am new to the site.

Can someone tell me what happens if you decide to vote no , ie sign nothing. If the yes vote wins the poll how are the people who voted no effected or are we all in the same boat deciding which of the two yes options we then want at that stage?

Any advice would be much appreciated.

Regards

Maurice

 




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26 Apr 2010 13:56 by wakemans Star rating. 57 forum posts Send private message

If the yes vote wins you have a simple choice of having your house or 65% of your money back.

San Jose are assuming that all those who vote yes want their house.

if you vote yes & want your money back, that will mess up all their finances as not enough people will continue with the build so they will probably go into liquidation some years down the line.

Voting yes & wanting your money back is sending a false message

Regards

 




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26 Apr 2010 14:10 by redman Star rating. 234 forum posts Send private message

Not quite,

You see if you vote 'yes' and the proposal goes ahead you are locked into the 65% in five years time. 

Whereas if you vote 'no' (i.e. against) and the proposal goes ahead then you can resolve your contract and claim your money back with immediate effect. (Oh I doubt you would get it back immediately, but at least you could claim it).

And this brings me to an important point.  If I was devious, I would not have told you this second part but encouraged you all to sign up, so I would have more chance of getting my money, being one of only a few.

;)

 

 

 




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26 Apr 2010 14:39 by dub123 Star rating. 4 forum posts Send private message

 

 

redman and Wakemans , many thanks for your reply, It makes it easier for me to make my decision.




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26 Apr 2010 16:20 by laferia Star rating. 17 forum posts Send private message

Excellent posting Redman  -  many thanks.




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26 Apr 2010 23:06 by marie123 Star rating. 1 forum posts Send private message

Hi,
 
I am new to this site and have found the information available very valuable but also confusing at times.  I have been thinking about the offer made by HDT and wonder why if HDT have €380 million in assets and only owe €11 million to the banks and tax, why they do not sell off the amount of   assets needed to raise the €11  and pay them, and if they cant sell the other €300 + million to make the €70 million they owe to ordinary creditor , why not form a company between the ordinary creditors and let HDT give this company the balance of their assets  and to sell them over time.
 
I know this would take time but we may even come out better off, I know  we all just want our money back, but I'm thinking could HDT  come in under another name and buy the assets for a knock down price and then we would get even less than 65% we have been offered.
 


 


 



This message was last edited by marie123 on 27/04/2010.


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27 Apr 2010 13:29 by auntielinda Star rating in San Miguel de Salina.... 652 forum posts Send private message

Because Almedena wants all the money for herself, she will be taken out of the equation long before 6th May you mark my word



_______________________

Great Auntie Linda

 



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27 Apr 2010 20:22 by kayem Star rating. 161 forum posts Send private message

Am i to understand by your statement you have taken out a contract on her to be carried out by the Bridlington mafia ?

Anonymous.




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27 Apr 2010 23:10 by Laird Dave of Lochaber Star rating in San Miguel De Salina.... 184 forum posts Send private message

No Not the Bridlington Mafia, but someone we know is taking her to court for Fraud, therefore stopping her from having any input into the affairs of Hdt.

Dave




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28 Apr 2010 08:26 by kayem Star rating. 161 forum posts Send private message

In reality we know that will not work because she will just sit in the background pulling the strings of a front line puppet.

Does anybody know someone or some organisation who might be suitable for this job possibly with previouse experience of puppetry ?

Ken.




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28 Apr 2010 13:51 by wakemans Star rating. 57 forum posts Send private message

Posted by Maria on the general forum

There is now Case law to back that purchasers without Bank Guarantee are before the most preferential creditors, which is, and have always been in our opinion, the correct interpretation of provisions 62 and 84.6 of the Bankruptcy Act.

Case Law is from La Coruña, which does not mean that the judge in charge of San José/Herrada del Tollo insolvency proceedings will agree with this.

Alternatively to defense of your credit as " against the assets" of the company as explained above, if you were not given a Bank Guarantee, you can use an action against the Bank which received your deposits, out of provision 1.2 of Law 57/68.

We are using this strategy for our clients, which is full grounded in Law. We do hope to succeed, but, as it is always said: cannot assure a success.

I do think that the fight is worth it and fair to Consumers rights. Specially becuase you were deprived of the most important Guarantee for these cases.

Best regards,

Maria


 


_______________________
El blog de Maria

 

Maria L. de Castro, JD, MA

Lawyer

Director www.costaluzlawyers.es

 




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Previous Threads

Court extends UK signing at Notaries to the Friday 30 April - 0 posts
Meeting in Jumilla today - 13 posts
the final chapter - 5 posts
SARC letter to purchasers - 11 posts
Some good news but more need to sign up to the agreement - 10 posts
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Important new information - Esp for those without Bank Guarantees - 8 posts
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Please read this Tony - 6 posts
What do you all think ? - 5 posts
Justin and Marias podcast - 1 posts
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The Vote - 13 posts
My Good News - 16 posts
Maybe Some Help - 2 posts
VOTE - 42 posts
SAVE YOUR MONEY, SAVE YOUR HOUSE,SAVE SADM! - 8 posts
The Offer from Almudena - 24 posts
Recording of SARC's last meeting with Almu - 3 posts
Porkies - 8 posts
Be in the know !!! - 0 posts

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