Company in Crisis: The Liquidation Process in Insolvency Proceedings

Financially distressed companies suffering from an absolute and irrecoverable loss of competitiveness can find in the Insolvency Act [Ley Concursal] the possibility of an orderly liquidation proceeding. This note examines the duties of receivers in liquidation declarations and the procedure to be followed, exploring the alternatives of individual asset liquidations and production unit sales. It provides a thorough description of the process by which production units are sold and awarded, reflecting on the criteria that unify the doctrine as developed by the Mercantile Courts of Barcelona in 2014, and on the jurisdictional conflicts with the labor courts and consequent risks in terms of the company's succession.