In general, it is the confirmation by a court of justice of a judgment ordering the execution of an act; consent to and order for the enforcement of an arbitral award. For example, the court approved the sale. Nevertheless, the 4th additional provision limits the value of the collateral for the effects of the refinancing agreement. Loans secured by collateral may be partially affected by the refinancing agreement concluded. To this end, the LC determines how the value of the security right is to be calculated. This value is derived from the deduction of outstanding liabilities from 9/10 of the fair value of the asset. This result must not be less than zero or higher than the value of the loan. The exceeding of this value will be affected by the agreement concluded in accordance with the majorities obtained. The requirements that refinancing agreements must meet in order not to be terminated are divided into two categories.
On the one hand, there are agreements that meet the requirements of Article 71bis.1 and, on the other hand, there are agreements that meet the requirements of Article 71bis.2. Neither category of agreement can be terminated if it meets the conditions set out in the ACT. Since refinancing agreements are an instrument to avoid insolvency proceedings, it is therefore necessary to protect them against possible termination when the debtor initiates insolvency proceedings. The LC protects these agreements in particular. This protection is based on compliance with the legal requirements established for this type of agreement. We will discuss these requirements later. Car manufacturers are good at validation and homologation and have no skills in software development, while software publishers have the opposite problem, the computer industry has always valued the speed of development more than the perfection of the product, while the automotive industry has tended to perfect a product instead of rushing it. The impact of the extension will change depending on the percentage of financial creditors who have signed the agreement. We distinguish below the situations that can arise: The purpose of judicial homologation is to extend the effects of the refinancing agreement to financial creditors who did not participate in the agreement or who did not vote in favor of it. Such creditors may be affected by the agreement unless their creditors are secured by a security right.
The approval is derived from the Greek term homoologeo, which means „to accept”. This is also called approval. The main difference between signing one agreement and another is the possibility that it can be homologated in court. Only refinancing agreements which meet the requirements set out in Article 71a(1) LC may be approved before the courts. Refinancing agreements are mechanisms to avoid the decision of bankruptcy proceedings. Such agreements must be protected against termination in possible insolvency proceedings because of the temporary date on which they are concluded. The LC determines the impossibility of terminating these agreements if certain requirements are met. Approved agreements may extend their effects to financial creditors who have not signed them. Baku is on the right track, we are working on the project, we have almost completed the project, now we are going through some phases of homologation and after this phase we can already start the actual construction. The refinancing agreement was approved for 60% of the financial liabilities (or 65% for creditors with special privileges). The consequences are as follows: if the negotiations do not lead to a refinancing agreement, the debtor must apply for insolvency proceedings.
The LC sets a deadline of 3 months to negotiate and reach an agreement. After this period, the debtor has another month to apply for insolvency proceedings. This provision also determines the fair value of each asset or how it is to be calculated. The approval of refinancing agreements has „attempted” to become a pillar of the survival of the Spanish business sector. This is how the 4. Additional provision of the Insolvency Proceedings Act (LC from now on), which was introduced in 2009. This Regulation allows for the judicial approval of refinancing agreements. This provision breaks the need for financial institutions to behave unanimously towards the debtor. The 4th additional provision was never peaceful and was the subject of up to 6 amendments.
The 4th additional provision governs the approval of refinancing agreements, which is provided for in Article 71 bis of our Code of Insolvency Proceedings (LC). In this article, we will explain what refinancing agreements are in insolvency proceedings and what their impact is. Refinancing agreements cannot therefore be terminated if they meet certain conditions. Certification refers to the issuance of an approval or confirmation by an official authority such as a court, a ministry, or an academic or professional institution. Agreements signed under the conditions of Article 71bis.1 require the unanimity of creditors under the specified conditions. The agreements referred to in Article 71bis.2 may be signed individually or jointly. Before explaining what refinancing agreements are, we will talk about reintegration measures. As already mentioned, the main difference between a refinancing agreement and the requirements of Article 71bis.1 or Article 71bis.2 is judicial homologation.
The 4th additional provision of the LC regulates the approval of refinancing agreements. Only agreements which fulfil the conditions laid down in Article 71a(1) may be approved. One of the conditions for the adoption of the refinancing agreement under Article 71bis.1 was the subscription of 3/5 of the liabilities. No distinction is made between financial and non-financial liabilities. However, court approval requires that the agreement be signed by at least 51% of financial liabilities. The approval of agreements is agreed in court by a judgment. All effects will be extended as soon as they are published in the BOE. Once the homologation has been requested, the debtor may not apply for a new one until one year has elapsed since the first one. The LC establishes a safeguard mechanism for the debtor negotiating a refinancing agreement. More specifically, it is specified that as soon as the debtor informs the judge of the start of negotiations, no enforcement can be initiated. It is a protection against the signing of the agreement.
The approval of refinancing agreements involves extending the impact of the agreement to divergent creditors. However, these effects do not extend to loans secured by collateral where the creditors have not signed the agreement. Homologation is a technical term derived from the Greek homoologeo for „agree”, which is generally used in English to refer to the granting of approval by an official authority. This may be a court, a ministry, or an academic or professional institution, each of which normally works according to a set of strict rules or standards to determine whether such approval should be granted. The word can be considered synonymous with accreditation, and in fact, it can be used in both French and Spanish in terms of university degrees. Certification is another possible synonym, while homologated is the form of the infinitive verb. In today`s market, for example, products often need to be approved by a public authority to ensure they meet safety and environmental impact standards. A court case can also sometimes be approved by a judicial authority before it can be prosecuted, and the term has a precise legal meaning in the judicial codes of some countries. The corresponding testing and certification process for compliance with technical standards is generally referred to as type approval in English-speaking jurisdictions.
Another use refers to the biological sciences, where it can describe the similarities used to attribute organisms to the same family or taxon, similarities that they inherited together from a common ancestor. . The LC introduced the mechanism for the reinstatement of certain measures before the decision of the bankruptcy proceedings. To allow for reinstatement, two prerequisites must be met: time and damage. The law allows the cessation of actions that have been formalized in the two years preceding the decision of the bankruptcy proceedings. To do this, these actions must have damaged the debtor`s assets. Withdrawal in bankruptcy proceedings. In commercial practice, for example, products are often approved by a public authority to ensure that they meet safety and environmental impact standards. No assessment is required if there is an assessment prepared by an independent expert. If this has been done within six months prior to the start of negotiations. Si te ha interesado este artículo no dudes en leer:Effects of bankruptcy proceedings Declaration on contracts The most decisive effects of the declaration of concussion for the continuity of bankruptcy are those that fall on contracts. .