SolarProfit Group restructuring plan halted: Advisors

Ibercaja, CaixaBank, Bankinter, Cajamar, BBVA, Deutsche Bank, Banc Sabadell and Banco Santander have achieved a legal victory after challenging the court ruling that approved the restructuring plan of the SolarProfit Group, whose parent company is listed on BME Growth. The Provincial Court of Barcelona has upheld the challenge in its entirety, declaring the entire plan null and void and ordering the debtors to pay the legal costs.

The restructuring plan had been approved thanks to the favourable vote of a group of creditors representing only 0.021% of the debts involved, which exceeded €200 million. Among the measures envisaged, the plan included a 96% reduction in ordinary credits.

Among the grounds for the challenge, the KPMG Abogados team alleged improper formation of classes, demonstrating that the class that approved the plan was created instrumentally, with the sole purpose of having an ‘in the money’ class that would vote in favour of the plan. The Provincial Court accepted KPMG Abogados’ arguments, considering that there was no differentiated interest that justified the separation of this class from the rest of the creditors.

“Although the improper formation of classes was the only reason why the Provincial Court of Barcelona declared the Restructuring Plan ineffective, the ruling sends a very important message by firmly establishing that the separation of creditors of the same rank into different classes requires clear and well-founded justification, thus avoiding the artificial use of pre-insolvency tools,” the firm explains.

Advisors

The KPMG Abogados team that led Caixabank’s defence was composed of Alexandra Borrallo (partner), Maria Padró (senior manager), Guillermo Cantarero (senior associate) and Maria Salvador (associate).

Garrigues advised Santander and BBVA; Sabadell worked with PBC Abogados & Economistas and EY.