The Society for the Management of Assets from Bank Restructuring (Sareb) and the Registry of Forensic Economists (Refor) -specialized body of the General Council of Economists of Spain in the field of forensic economics- have signed a new agreement that broadens the framework collaboration that both have maintained since 2018 to expedite bankruptcy proceedings.
The agreement will be incorporated into the Good Practice Guide agreed by Sareb and Refor and will allow the existing collaboration framework to be adapted to the current circumstances arising from the Covid-19 crisis, which will foreseeably cause an increase in the number of tenders.
The agreement, signed on Wednesday by Marisa García Camarero, Sareb’s general secretary, and by Valentín Pich, president of the General Council of Economists, contemplates the current need to increase collaboration between the various operators involved in bankruptcy proceedings, specifically between the insolvency administrators and creditors with special privilege, in order to lighten the workload of the courts and the liquidation of the assets included in these processes, which will make the bankruptcies more efficient and reduce costs and time for all those involved in them.
The Good Practices Guide that both maintain also includes, among other issues, that in the case of payments in payment, both Sareb and the insolvency administrators will collect all the information necessary so that the commercial courts can take this option into account at the time to process the contests.
In the event that the dation in payment is not viable, the bankruptcy administration will request the holding of an electronic judicial or notarial auction or through a specialized entity authorized to do so with all the requirements of transparency and technical and economic solvency.
They foresee an increase in the number of procedures for the coronavirus
The Guide also includes the importance of maintaining communication channels that allow collaboration in the process of commercializing the assets of bankrupt companies – for which the involvement of Sareb managers or servicers at no cost for the tender is contemplated – at the same time which includes the commitment of both to cooperate in the reorganization of the assets included in the insolvency proceedings in order to avoid their deterioration.
For Marisa García Camarero, “this agreement is part of Sareb’s strategy of reaching agreements that allow speeding up the resolution times for legal proceedings and bankruptcy proceedings.” For his part, Valentín Pich assured that “we are at a juncture within the bankruptcy world in which it is an act of responsibility to work with the tools that we have in our hand to expedite them”.