On February 3, 2012, the Spanish Government issued a Royal Decree-Law to address market concerns over the valuation of real estate assets to which credit institutions have large exposures through loans and repossessed assets. The law provides for the "clean up" of bank balance sheets by increased provisioning combined with a required capital buffer on impaired assets. These measures will certainly force Spanish banks to sell part of their assets within 2012 (at least those with a higher market value than book value) and many banks are already in discussion with foreign investors.
Just a month earlier, on January 1, 2012, Spain’s insolvency regime was modified in order to promote the restructuring of companies in distress and reduce the numbers of companies going into liquidation.
Please join Mayer Brown on March 29, when Rafael Bazán, a partner with Ramón y Cajal, our alliance firm in Spain, will discuss the Royal Decree-Law and the impact of the changes to the insolvency regime. Rafael will be joined by Paul Forrester of our Chicago office who will offer a US perspective on the opportunities for US funds looking for potential European investments.
Of Related Interest
Reform of Spanish Insolvency Law
Ramón y Cajal Newsletter
Performing and Non-Performing Loan Transactions Across the World: A Practical Guide
Mayer Brown's Global Financial Markets Initiative helps clients deal with the legal and business challenges resulting from the ongoing turbulence in worldwide financial markets. By mobilizing the firm's global resources from multiple practices and offices, the Initiative provides clients with knowledgeable and timely counsel on a broad spectrum of their legal needs.