At Valtus Alliance, we have an international network of restructuring experts, recognizing that each country has its own legal framework and restructuring practices. In this interview, Ronald de ZoeteValpeo's partner in Amsterdam, speaks with Juan Manuel Gil de Escobar, managing partner of Epunto in Madrid, on how restructuring is being approached in Spain.
What makes the legal framework for insolvency and restructuring unique in Spain?
"The most common and fatal mistake is denial, coupled with the attempt to resolve the crisis using the same resources and methods that caused it. Boards of directors and senior executives often rely on a miraculous market recovery that rarely materializes. They must understand that the likelihood of insolvency is not an optional rescue route, but a mandatory exercise in due diligence. Detecting it requires immediate action to protect the viability of the company and the legal security of the board of directors, even though it remains an extremely difficult decision to make."
At what point and in what role (e.g., consultant, finance director, risk director) should an external restructuring expert be brought in?
"An expert should be brought in as soon as the likelihood of insolvency is detected, without undue delay. In mid- and large-cap companies, a traditional consultant is insufficient, as their role is limited to preparing reports. The key figure is the interim restructuring manager, who acts as the chief restructuring officer (CRO). This professional does not merely advise, but assumes executive control of the restructuring, providing the necessary authority to implement drastic changes in both operations and capital structure."
What is your opinion on the use of protective procedures as part of a restructuring strategy?
"In Spain, the restructuring plan is our main shield. However, if a high-level CRO is in place well in advance, it's often possible to avoid the formal execution of a court-ordered plan altogether. The viable timeframe provides a buffer that, when managed by experts, allows for a private and agile restructuring, healing the company before the crisis becomes public knowledge."
Can you describe your local restructuring network? Who do you regularly collaborate with?
"At EPUNTO Interim Management, a member of the Valtus Alliance, we operate with an ecosystem of trusted interim managers specializing in operations, finance, and human resources with distinct CRO profiles. These are expert executives with practical experience, capable of stabilizing cash flow in very short timeframes and leading complex negotiations. They frequently collaborate with top-tier corporate law firms to ensure that operational and legal strategies progress in perfect synchronicity."