Bankruptcy proceedings up 48% in Spain in first two months of year

Companies restructuring Image from page 185 of "Thackerayana;" (1875)

Informa D&B| In the first two months of 2024, 1,516 insolvency proceedings and 7,871 dissolutions have been registered in Spain, according to data on insolvency proceedings extracted by INFORMA D&B S.A.U. (S.M.E.), a subsidiary of Cesce. These figures represent an increase of 48% for insolvency proceedings, while dissolutions decreased by 1%.

The companies in insolvency proceedings in February had sales of around €666 million and employed 5,300 people.

Most of the procedures recorded since January correspond to insolvency proceedings, 1,249, with an increase of 36%, the special procedures for micro-companies are the ones with the highest percentage growth, rising from 4 to 219, and the 48 restructuring plans recorded so far represent a drop of 51%.

Specifically, 880 insolvency proceedings were initiated in February, an increase of 168% since last year and 38% compared with the previous month of January. Of these, 714 are insolvency proceedings, 147 are special proceedings and 19 are restructuring plans.

The transposition of European Directive 2019/1023 on restructuring and insolvency has led to a profound change in the Spanish insolvency system, where two new procedures have been introduced through the reform of the Insolvency Law 16/2922 of 5 September: a special procedure for micro-companies and restructuring plans.

Smaller companies, micro-companies, accounted for most of the insolvency proceedings initiated in February, almost 82%, small companies accounted for 16%, medium-sized companies for 2% and only two large companies initiated insolvency proceedings this month. As for restructuring plans, micro firms account for 58% of the total this month, small firms almost 32%, medium-sized firms 10.5%, and there are no large firms.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.