Cepyme foresees a “strong increase” in the closing of companies in September after the end of the bankruptcy moratorium | Economy

The Spanish Confederation of Small and Medium Enterprises (Cepyme) has warned of a “sharp increase” in bankruptcies as of September due to the end of the bankruptcy moratorium, which expires in June, as reported in a statement. In this way, starting this Friday, July 1, entrepreneurs with their business in a state of insolvency will have the obligation to request the formal declaration of insolvency proceedings. In the same way, the creditors, after more than two years of moratorium, will be able to launch said procedure to request the payment of their debts.

From Cepyme they have pointed out that it will be during the month of September when most of the procedures are presented due to the fact that August is a non-working month in the Mercantile courts and the term of two months for the voluntary presentation of the contest. Likewise, from the confederation they have pointed to a possible “collapse” of the resources in the Mercantile courts after the summer, which would have “a very important economic cost” for the companies.

As for the new regulations, which will be approved by Congress this Thursday, Cepyme expects the new law to benefit most SMEs in the medium term, but not micro-enterprises that are currently at risk of insolvency, so most of these will benefit from the abbreviated bankruptcy procedure because a large part of them have exhausted their assets during the pandemic.

higher exemptions

The new bankruptcy reform contemplates exemptions from public credit for individuals of up to 10,000 euros with the Treasury and 10,000 euros with Social Security, compared to the 1,000 euros that the project submitted by the Government initially contemplated for both instances. This reform will be approved, which transposes the directive on insolvency, restructuring and debt relief procedures, it will be approved together with another reform of the Commercial Courts to readjust the distribution of matters and transfer consumer complaints to the Courts of First Instance , users and travelers.

However, the confederation has asserted that, in the absence of concluding the parliamentary process, the new regulation incorporates important changes that “will be favorable for the business fabric” in the medium and long term, given that the new abbreviated process of the new regulation will be it envisions as “a less bureaucratic and much less burdensome procedure” for SMEs and micro-enterprises without assets.

“The new text provides for strengthening the restructuring plans and facilitating the sale of productive units, but in the short term, these instruments will not be able to benefit the majority of companies that have been insolvent for months,” they have warned from Cepyme.