Spain

The impact of the new Spanish Insolvency Law on the enforceability of close-out netting provisions

Jose Manuel Cuenca, Clifford Chance SC, Madrid

On 1 September 2004, the new Insolvency Law ( Ley Concursal ), approved by the Spanish Parliament on 9 July 2003, came into force. It supersedes all of the insolvency provisions contained in the Commercial Code 1885 and will be applied to any bankruptcy proceedings commenced after 1 September 2004.