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REPORT NOTE ON ROYAL DECREE-LAW 27\/2021 OF 24 NOVEMBER, EXTENDING CERTAIN ECONOMIC MEASURES TO SUPPORT RECOVERY.<\/strong><\/p>\n Today, 24 November 2021<\/strong>, the Royal Decree-Law 27\/2021<\/strong> has been published in Spain\u2019s Official State Gazette (BOE<\/em>). Among other measures in various fields, Article Three<\/strong> of this Decree-Law amends Law 3\/2020 of 18 September<\/strong>, on procedural and organisational measures to address COVID-19 within the Administration of Justice. \u00a01. Extension of the obligation to file for insolvency<\/strong><\/p>\n The main change is the extension of the obligation to request the declaration of insolvency until 30 June 2022. 2. Pr\u00f3rroga concurso necesario.<\/u><\/strong><\/p>\n Compulsory insolvency petitions submitted between 14 March 2020 and 30 June 2022 will not be admitted for processing.<\/p>\n Voluntary insolvency proceedings filed up to 30 June 2022 will take precedence over compulsory petitions, even if the latter were filed earlier.<\/p>\n It should be noted that, on this occasion, no new moratorium has been established<\/strong> regarding the obligation to request liquidation<\/strong> due to non-compliance with an approved agreement \u2014 unlike in previous extensions.<\/p>\n Furthermore, Article Three<\/strong> of Royal Decree-Law 27\/2021<\/strong> amends Law 3\/2020<\/strong> in corporate matters by providing that losses incurred in 2021<\/strong>, in addition to those of 2020<\/strong> (already covered under Article 13.1 of Law 3\/2020), shall not be considered<\/strong> for the purposes of determining whether the cause for dissolution<\/strong> set out in Article 363.1(e) of the Spanish Companies Act<\/strong> (Ley de Sociedades de Capital<\/em>) applies.<\/p>\n If, at the close of the 2022 financial year<\/strong>, the company records losses resulting in undercapitalisation<\/strong> (net equity below half of share capital), a general shareholders\u2019 meeting<\/strong> must be convened within two months<\/strong> (from the close of that financial year) to decide on the dissolution of the company<\/strong>, unless the share capital is increased or reduced accordingly<\/strong>.<\/p>\n
In insolvency matters, it introduces the following key updates<\/strong>, briefly summarised below:<\/p>\n
\nTherefore, the two-month period available to a debtor to file for voluntary insolvency will be counted from the end of the suspension period of that obligation \u2014 that is, until 1 September 2022.<\/p>\n