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Las reformas de la Ley Concursal durante la Gran Recesión

Miguel Garcia-Posada () and Raquel Vegas

No 1610, Working Papers from Banco de España, Working Papers Homepage

Abstract: Traditionally, bankruptcy procedures in Spain have been lengthy and costly processes that have nearly always (95%) resulted in the liquidation of the insolvent firm. These dysfunctions became apparent with the large increase in bankruptcy filings during the crisis that started in 2008 and the ensuing congestion of the courts. In order to resolve these and other problems, the Bankruptcy Law has been reformed several times. The goal of this research is to analyse the impact of these reforms on two facets: the length of bankruptcy procedures and the probability of achieving a successful reorganisation, hence avoiding the firm’s liquidation. Our findings show that two of the four reforms analysed increased the percentage of reorganisations and decreased bankruptcy duration through improving the quality of insolvency administrators and by fostering out-of-court workouts for large corporations.

Keywords: bankruptcy; reorganisation; liquidation; duration analysis; competing risks (search for similar items in EconPapers)
JEL-codes: G33 C41 K22 (search for similar items in EconPapers)
Pages: 50 pages
Date: 2016-06
New Economics Papers: this item is included in nep-net
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