Freelancing

Entrepreneurs and freelancers demand to extend the bankruptcy moratorium to avoid a wave of bankruptcies in 2022 – Central Valley Business Journal

Summary

11/18/2021 at 08:33 CET

David Page / Cristina Gallardo

Since the beginning of the pandemic, the Government has been chaining bankruptcy moratoriums to avoid an escalation of company closures hit by the stoppage or decline in activity during the crisis. Since April 2020, in the middle of the first state of alarm, these moratoriums have been extended that allow companies that would be viable under normal business conditions not to request the bankruptcy and…….

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11/18/2021 at 08:33 CET

David Page / Cristina Gallardo

Since the beginning of the pandemic, the Government has been chaining bankruptcy moratoriums to avoid an escalation of company closures hit by the stoppage or decline in activity during the crisis. Since April 2020, in the middle of the first state of alarm, these moratoriums have been extended that allow companies that would be viable under normal business conditions not to request the bankruptcy and that their creditors cannot activate it either.

The objective of the measure, as proposed by the Executive, is to maintain the activity of the companies and employment while recovering the levels of activity prior to the crisis. That is, giving legal instruments to companies to avoid a cascade of bankruptcies of companies and facilitate refinancing agreements and out-of-court agreements.

The current bankruptcy moratorium will end next December 31st and from the business associations they begin to mobilize to obtain a new extension of the measure. Entrepreneurs and freelancers demand an extension of the suspension of the obligation to request bankruptcy to avoid a wave of business bankruptcies at the start of next year and the collapse of the courts in charge of managing the bankruptcies.

From the employer CEOE and from the Federation of Workers Associations Self-employed (ATA) It is pointed out that the Ministry of Economic Affairs, commanded by Vice President Nadia Calviño, will have to extend the bankruptcy moratorium beyond this year due to the enormous number of companies still in trouble and that are still covered by aid systems (especially ERTEs linked to to Covid, now extended until the end of next February while working on a new ERTE system that is permanent).

“Ending the bankruptcy moratorium in the current economic circumstances does not make sense. It has to be maintained until we see how companies behave once the aid is withdrawn and until the economic recovery is full. If not, the courts are going to be overwhelmed & rdquor ;, he argues Celia Ferrero, Vice President of ATA. “The moratorium should be maintained throughout 2022 & rdquor ;, sentence. An extension of a whole year in line with the previous extension, approved by the Government in mid-March and until the end of 2021, but which may be excessive.

However, both CEOE and ATA handle another scenario that they consider almost inalienable for practical and operational reasons: extend the moratorium at least until the reform of the Bankruptcy Law is in force prepared by the Ministries of Justice and Economic Affairs and which will serve to transpose the European directive on corporate restructuring.

Although businessmen and freelancers reject some of the measures included in the draft law by the Government (the maintenance of the privilege of public debts with the Treasury and Social Security in case of restructuring or second chance, the lack of an early warning system, eliminate the figure of …….

Source: https://cvbj.biz/entrepreneurs-and-freelancers-demand-to-extend-the-bankruptcy-moratorium-to-avoid-a-wave-of-bankruptcies-in-2022.html

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