SPAIN Law and Practice Contributed by: Alfonso López-Ibor and Olivia López-Ibor, Lopez-Ibor Abogados
2.9 Insolvency Proceedings 2.9.1 Overview of Relevant Laws and
2.8.9 Choice of Laws Governing Deregistration Power of Attorney A DPOA can be governed by a foreign law, but it would need to meet certain formal requirements, such as notarisation by a notary public and provision of the Apostille per the Hague Convention of 5 October 1961. However, such a power of attorney may not provide sufficient assurance and security in the event of a default. 2.8.10 Revocation of a Deregistration Power of Attorney Under Spanish law, a power of attorney can be irrevo - cable if this has been expressly agreed by the principal and provided that there is an underlying contractual reason for such irrevocability. However, enforceabil - ity of the power of attorney against the lessee would require Spanish court action, since the application of “self-help” remedies is very restricted under Spanish law. 2.8.11 Owner’s/Lessor’s Consent Unless an IDERA is duly recorded with the Spanish Aircraft Register, an aircraft owner, mortgagee or les - sor cannot export an aircraft without the lessee’s con - sent. 2.8.12 Aircraft Export Permits/Licences The Spanish Air Authorities will issue the Export Cer - tificate of Airworthiness about 15 days after the rede - livery of the aircraft. An Export Certificate of Airworthi - ness is not necessary if the country of new registration is a member country of the European Aviation Safety Agency (EASA). 2.8.13 Costs, Fees and Taxes Concerning Export of Aircraft The costs/fees for exporting an aircraft are minimal. 2.8.14 Practical Issues Related to Deregistration of Aircraft There are no significant practical issues that an aircraft owner or mortgagee or lessor should be aware of in respect of the deregistration of aircraft in Spain.
Statutory Regimes Governing Restructurings, Reorganisations, Insolvencies and Liquidations In Spain, any aspect affecting a contract in which one of the parties (either the lessor or the lessee) is facing insolvency will be regulated by the Royal Legislative Decree 1/2020 of 5 May 2020, which approves the Revised Version of the Insolvency Law ( Texto Refun- dido de la Ley Concursa or TRLC). 2.9.2 Overview of Relevant Types of Voluntary and Involuntary Restructurings, Reorganisations, Insolvencies and Receivership From the moment a company becomes insolvent, it will have to apply for one of the two procedures regu - lated in the TRLC: • Pre-insolvency proceedings ( preconcurso ): When a company is facing current, imminent (expected insolvency within three months) or probable insolvency (expected insolvency within the next two years), it may issue a make a formal com - munication announcing the commencement of negotiations with its creditors, or the intention to initiate them (the “Communication”), with the aim of formulating a restructuring plan to mitigate the insolvency situation (the ”Restructuring Plan”). • Insolvency proceedings: When a company is fac - ing actual or imminent insolvency, it may file for insolvency proceedings, which are organised into two phases: (a) A “common phase” ( fase común ): The debtor is placed under court protection to determine its assets and liabilities and to identify poten - tial pathways for reaching an agreement with creditors, or determine if the company is no longer financially viable due to consistent lack of profitability or insurmountable debt levels that significantly outweigh assets. In the latter scenario, the company may need to be liqui - dated. (b) This is followed by a second phase, either the “agreement phase” ( fase de convenio ) if the debtor is deemed financially viable, or the ”liquidation phase” (fase de liquidación ) if the company is not deemed financially viable.
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