Courts and Tribunals

The transposition of European Directive 2019/1023 should serve as a framework for reordering corporate restructuring mechanisms, in which the urgent sale or auction of assets and Production Units (PUs) will be necessary. Some courts are already applying systems such as pre-pack, which is configured as an agile and transparent pre-bankruptcy tool in which an independent expert, appointed by the court itself, is responsible for the execution and supervision of the entire process of early sale of the PU. Through this formula, the UP's sale occurs almost immediately once the insolvency proceedings have been declared.

IAG Auction's experience in liquidating bankruptcy and foreclosure assets, as well as its participation in corporate restructuring processes that require the early realisation of assets, allows us to work closely with independent expert in these key aspects. This strengthens the performance of the future Bankruptcy Administrator and exponentially increases the chances of success of the operation.

We support professionals (lawyers and economists) in finding solutions for companies through divestment instruments, new investors and other possibilities to avoid the final filing for insolvency proceedings.

Procedures regulated in articles 690 et seq. of the TRLC The adaptation of the TRLC to the Community Directives has led to the creation of a special insolvency procedure for so-called micro-companies that is regulated in Book Three of the new TRLC. In the aspects relating to the pre-bankruptcy institutes and the possibility of disposal of certain assets, this process is the same as that set out in articles 583 et seq. concerning the rest of the entities that can benefit from the common procedure and therefore, in this special procedure, we can also intervene to give the assets to be realised the highest possible profitability.

We manage the entire procedure for the sale or liquidation of assets, both in the Common Phase, article 204 et seq. of the TRLC, when the needs of the insolvency proceedings require sales in this phase, and the strict liquidation procedure, article 406 et seq. of the TRLC, by designation as a specialised company by the insolvency administrators who have entrusted us with the management of the entire procedure. et seq. of the TRLC, through appointment as a specialised company by the insolvency administrators who have placed their trust in our management, as we take charge of the entire procedure from the commission with the location of the assets, inventory, appraisal, maintenance, security, etc. until the culmination of the sale and payment of the price to the insolvency proceedings, and this both through direct sale procedures and using a notarially certified online auction.

We can intervene in the so-called ‘Counterclaim’, which was introduced for a limited period in one of the reforms of the Insolvency Act and has again been implemented in Art. 8 of Royal Decree 16/2020 on urgent measures issued as a result of COVID-19, being able to advise professionals on investment or disinvestment projects of their clients that are necessary to enable creditors to accept a reformulation of the agreement in the compliance phase but with the prospect that it cannot be met, thus avoiding an effective breach and the opening of the dreaded liquidation.

IAG Auction's participation in the sale of the assets directly represents an increase in the realisation values of the assets and, therefore, a higher return on the credits that are executed, which is beneficial for both the creditor and the debtors.

The marketing and advertising activities aimed at promoting the interest of investors, give us a high percentage of success in the adjudication of the auctioned assets. According to IAG Auction figures, during the last financial year 2021, the percentage of auctions ending with bids amounted to 95.45% for real estate, while 54.18% of judicial auctions and 38.87% of notarial auctions were deserted in the same period (data extracted from the Ministry of the Presidency, Relations with the Courts and Democratic Memory).

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