Legal assistance for business units in distress in Spain
Protect your company with legal advice for struggling business units
Our corporate lawyers will guide you through the process step-by-step.
How can a lawyer help me?
Working with a lawyer will help a company get a strong understanding and diagnosis of a difficult situation. Whether it’s a liquidity issue or there’s a risk of insolvency, an experienced legal expert can explore the situation and present options to alleviate the matter.
With company bankruptcy, the administrators might have criminal responsibility if the business wasn’t conducted properly. Lexidy recommends seeking legal advice as early as possible to prevent this from happening.
We are experts in handling these types of legal situations. We will help our clients maintain their businesses and maximize the value of the company’s assets to ensure creditors are completely satisfied and criminal action is avoided.
¨We will be with you each step of the journey.¨
What do pre-bankruptcy and bankruptcy mean for my business?
In the life of any company, there may be occasions when a business doesn’t perform as well as others and may even incur losses.
When the losses grow too large or persist too long in a particular division or unit, it can jeopardize the future of the entire company. Depending on how imperilled the business unit is, it could enter a pre-bankruptcy phase or even direct bankruptcy.
A potential solution to keep creditors at bay is selling some of the company’s assets and one of the best options here is attempting to sell a separate business unit.
A business unit is a different business within the entire business operation. It tends to operate autonomously but usually talent, physical assets and specific knowledge from other parts of the business. Usually, its value is greater when combined with the other businesses rather than being a unique and independent business.
A selling business unit gives the parent company an important cash injection to pay its creditors and keeps the unit operating, so its economic activity can continue delivering for the wider business. The bigger a company is, the more likely it is to have more than one business unit under its umbrella.
How to sell a business unit?
Generally, a business unit can be sold at any moment, regardless if it’s in the pre-bankruptcy or bankruptcy phase.
In the pre-bankruptcy phase, the sale may be conducted via a direct acquisition offer by an investor. This action will have to be approved by administrators known as “Cramdown Administrators.” These are bankruptcy officials that use court action to impose less attractive terms on those who are owed debts.
In the bankruptcy phase, these sales aren’t allowed and must be conducted via an auction after also being approved by the “Cramdown Administrators”.
At Lexidy LegalTech Boutique, our team of lawyers will assist you on how to design the best acquisition of the Business Unit. This can be either as a Purchase of Assets or a Spin-off.
Frequently Asked Questions
If one or more production units is transferred, the acquirer will be substituted into the contracts and be responsible for the continuity of the professional or business activity. There is no need for the other party to give consent.
It doesn’t necessarily lead to the payment of outstanding debt and it only occurs in very specific cases. For example, employment contracts, social security and other legally mandated scenarios.
We are a department formed by qualified legal experts who have been trained in the field of corporate law. We work on these requests every day and it’s our passion. For us, Lexidy is a way of life and what excites us the most is to be able to deliver the happiness and satisfaction of a successful process. We want to help you achieve your goals and dreams.
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