ANDORRA Law and Practice Contributed by: Miguel Cases, Marc Ambrós and Marta Felipó, Cases & Lacambra
Neither secured nor unsecured creditors can frustrate the liquidation process unless, for instance, unsecured creditors challenge the final liquidation balance if they believe their claims have not been appropriately con - sidered or that the distribution is unfair. The rights of both secured and unsecured creditors are subject to automatic stays in liquidation proceed - ings. This is designed to maintain order and prevent individual creditors from taking independent action that could disrupt the collective process. The stay allows the liquidators to manage the process and prioritise the payment of creditors according to their respective legal rights. Furthermore, the Andorran law does not provide a specific framework for third-party or non-debtor releases. 6. Cross-Border Issues in Insolvency 6.1 Sources of International Insolvency Law There are no specific sources of international restruc - turing and insolvency law in Andorra. In fact, as Andor - ra is a non-EU country, the provisions established by Regulation (EU) 2015/848 of the European Parliament and of the Council of 20 May 2015 on insolvency pro - ceedings are not applicable. Nonetheless, the Andorran legal framework provides for the recognition or other relief in connection with restructuring or insolvency proceedings in other coun - tries, but a distinction is made between judgments ( sentències ) and other rulings (see 6.4 Recognition and Enforceability ). Foreign judgments can be recognised in Andorra by means of the exequatur proceeding. The foreign judgment is subject to confirmation by the High Court of Justice of Andorra ( Tribunal Superior de Justícia d’Andorra ) and the approval of the exequatur pro - ceeding involves verification by the Civil Chamber of the High Court of Justice of Andorra of the following requirements pursuant to the foreign judgment: • the competence of the court that has delivered the ruling;
• the nature of the foreign procedure, including the right to jurisdiction (under the Andorran Constitu - tion); • the application of the competent law in compliance with Andorran conflict of law rules; • the conformity with national and international pub - lic order; and • the absence of fraud from an Andorran legal stand - point. Other rulings must meet the condition of reciprocity in all cases. 6.2 Jurisdiction The country where the debtor’s main interests are centred has jurisdiction to open a restructuring or insolvency procedure. This is normally the jurisdiction where the company has its registered office. If the debtor has a place of operation in a jurisdic - tion other than the one where their main interests are centred, that state may also open insolvency proceed - ings against the debtor. However, these secondary proceedings are limited to the assets held in that juris - diction. 6.3 Applicable Law The applicable law is the law of the jurisdiction in which the proceedings take place. 6.4 Recognition and Enforceability Final foreign judgments can be recognised and enforced against the debtor by means of the exe - quatur procedure. Foreign judgments are subject to confirmation by the High Court of Justice of Andorra which requires the prior verification of the following requirements by the Civil Chamber of the High Court of Justice of Andorra: • the competence of the court that has delivered the ruling; • the adequacy of the foreign procedure, including the right to jurisdiction (under the Andorran Consti - tution); • the application of the competent law in compliance with national conflict of law rules; • the conformity with national and international pub - lic order; and
18 CHAMBERS.COM
Powered by FlippingBook