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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

What happens with contracts and the rights/obligations associated with them?

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.

What happens to the outstanding receivables once the transfer occurs? Does the transfer require the purchaser to clear the unpaid debt?

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.

Our Story

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.

Héctor Lopez Vazquez
Head of Corporate Department

Client’s stories

Lexidy Legal Tech

4.8

Based on 457 reviews

pawel grochola

10:55 18 May 23

I used Lexidy services to apply for SETR status.I did it after contacting a number of providers, but Lexidy were the only ones that consistently kept regular communication, promptly answered e-mails, kept all the appointments. Something that is a normal expectation but rarely met in Spain :).In addition they were very competent, provided clear and accurate advice. They also flexible and accommodating and Sara Rinaldi that i dealt with is a very pleasant person to deal with.It seems it is a business that have a clear business model of providing good quality service and as such I think it deserves to be promoted.

Declan Ryan

20:48 01 Jun 22

The Lexidy team is uniquely positioned to provide pan-European business and tax advisory services; what would be complex or impossible for a country-specific advisor is straightforward for Lexidy. They answered in days what would take weeks for other firms.

17:31 24 Apr 22

I’ve dealt with hundreds of solicitors through business over the years but I must say Cristina and Lexidy Law are really something special. Responsiveness, proactiveness, knowledge and professionalism is, quite frankly, outstanding.M.

Signore Raffaele

12:53 07 Sep 21

The service I have received from Hector has been extraordinary.He has helped me opening bank accounts, managing my NIE and setting up my company's branch in Spain.I am very grateful for the help and the exceptional treatment and management.I won't hesitate to contact him again for any other business I may need.

dawei2010

16:12 08 Apr 21

Our company engaged Lexidy Law Boutique to help pursue our monetary claim against a former business partner registered under Spanish jurisdiction. They provided a professional work and our claim got enforced even before it was expected. We will be happy to engage them anytime in the future for any civil law related matters and I can only recommend their services.

dk impprojects

15:37 22 Feb 21

Lexidy law boutique services are very prompt and responsible, they created my business company in barcelona, spain. I received very good response from Maximiliano Agazzi for my residence permit issues. I am very much happy with Lexidy law boutique services.

Tom Elliott

11:44 18 Feb 21

Very helpful getting my business off the ground quickly and easily and affordably! Best of all, they speak English!

Dan Centinello

14:26 19 Nov 20

Let me start by saying that I normally do not write reviews - and I am often skeptical of the authenticity of the ones that are left. However, I feel like this law team has earned it and here's why...I am the type of person who will do endless research & contact several people before making a decision. I did the same when looking for a Spanish law firm that would be able to quickly handle my immigration matters and, most recently, help me with my leasing agreement for my apartment.They are extremely responsive (replying within a couple of hours of my messages) and even after office hours.Maximiliano, in particular, has been exceptional. He put a lot of effort to understand all the details of my situation so he can find the best solution.It was quickly evident that he understands that not all people have the same immigration situation and was going to tailor a solution specific to me.What impressed me most though was how he was thoughtful enough to make sure that his immigration solution did not impact my tax or business situation adversely. His focus on the big picture, while not missing the important small details is one of the main reasons why I felt compelled to write a review.Lastly, Max even made himself available during the time I was crossing the border, just in case I had any issues.With all this being said, I have worked with many lawyers in the past - many simply look for "a solution", but the great lawyers look for the "best solution". Everyone I have interacted with thus far at Lexidy seems to understand the latter. I feel very fortunate to have come across them in my research.I know how stressful it can be, especially when dealing with immigration issues. So, I hope this helps others out there that might be in the same situation I was in.

Michael Sandoval

16:44 19 Oct 20

I have had the pleasure to work with a lot of Lexidy's departments. Working with Max Aggazi Paulet to achieve everything needed for my residency was incredible. he help endlessly until everything was accomplished. Soon after i began working with their Real estate department. It has been a journey and they have stuck with me every step of the way. They have gone beyond the scope of their duties to help my dreams of purchasing a property in Spain come to fruition. I would like to thank Alejandro Cano and Jordi Aranda for for everything. Last but not least through the entire Process I have had the absolute pleasure to work with Camila Broderson. She is a Gem. She has guided me in every step to work on opening my LLC in Spain and has also gone beyond the scope of her duties to assist and be available at any time. I plan to continue to work with team at Lexidy and would highly recommend them to everyone. Thank you Lexidy team for everything that you have done so far! I look forward to continuing our partnerships and friendships!

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