What documentation is the entrepreneur required in order to request an insolvency proceeding?
According to the law the insolvency proceeding request must be accompanied by all the documents deemed necessary to prove the existence of an insolvency state, such as annual accounts, balance sheets, audit report, payment requests, constraints, embargoes, debt certificates from the Treasury and Social Security etc… In addition, the legislative text lists which documents must be accompanied by:
- A memory of the company’s economic and legal history.
It will be necessary to express the activity to which it has been dedicated during the last three years and the establishments, offices and holdings in which it is owner; the causes of the insolvency state and its considerations on the patrimonial viability.
The identity of the shareholders, the directors or liquidators, the directors-general and, where appropriate, the accounts’ auditor shall be indicated; if it holds listed securities, and if it is part of a group of companies, listing those that are integrated into that Group.
- An inventory of the goods and rights that integrate its patrimony.
Should be indicated the nature and characteristics of the property (immovable property, movable property, entitlements, etc…), its location and, if it is registered in a public registry, the registration details, its acquisition value, the appropriate valuation corrections and present value’s estimation.
Logically, the charges affecting them should also be indicated.
- The creditor’s list.
This list must be done in alphabetical order, with the identity expression, address, and email, if any, of each of the creditors, as well as the amount and maturity of the respective claims and of the personal or real collateral created. For example, pledges or mortgages.
If a creditor has sued for payment, the procedure shall be identified, and the status of the corresponding movements will be indicated.
- The list of workers, if any, and the identity of the representative body’s members.
- The annual accounts and, where applicable, the management reports and audit reports for the last three exercises that ended on the date of the request, whether or not those accounts have been approved.
- A report of the significant changes in equity after the last formulated, approved and deposited annual accounts.
- A report of the operations performed after the last formulated, approved and deposited annual accounts that had exceeded the ordinary trade.
Furthermore, if the company is part of a group as a dominant or controlled company, in addition to the mentioned above it shall provide: the annual accounts, the consolidated annual report and the audit report corresponding to the last three financial years ending on the date of application, whether or not those accounts have been approved. Likewise, an expressive exposition of the carried out transactions with other group companies during that same period and until the insolvency proceeding request. If the company was required to report or remit interim financial statements to supervisory authorities, it shall accompany the financial statements drawn up after the last accounts which accompany the insolvency proceeding request.
If the Judge considers that the presented insolvency proceeding request or the provided documents are defective or insufficient, a maximum period of five days will be given to rectify the defects.
Partner and lawyer in charge of the Litigation area at Devesa y Calvo Abogados