Homologación judicial de acuerdos de refinanciación y contratos de financiación sindicada

Homologación judicial de acuerdos de refinanciación y contratos de financiación sindicada

Abstract:

Spanish law nº 38/2011 has included, among the so-called preinsolvency remedies, the possibility to request that the courts extend the effects of a refinancing agreement agreed upon by a majority of financial institutions to a minority of dissenting ones. While this procedure is seen as the Spanish substitute for the scheme of arrangement, both alternatives are likely to continue being applied in Spanish refinancing practice.
The court extension of the effects of a refinancing agreement provided for under Spanish law has a narrow scope of application, that will disable its application in may cases. However, the court extension procedure may be particularly useful in scenarios where most debt of a company or group is concentrated in a syndicated facility or a group of related syndicated loans. In such scenarios, it will be possible to overcome certain existing limitations of the court extension as a result of the application of the majority rules provided for in the syndicated financing documentation.

Keywords: scheme of arrangement, court extension of a refinancing agreement (homologación judicial de acuerdos de refinanciación) syndicated financing