Spain was the country of Europe with the highest amount of businesses going into administration between 2008 and 2011, an Axesor report said yesterday. During the same period, figures showed, Spain was the country of Europe in which there was the least likelihood of companies going through the insolvency process (after Greece).
With a historic record of 5'492 companies declaring bankruptcy in 2011, only 18 of every 10'000 Spanish companies held a meeting of creditors, compared to 68 of every 10'000 European. The report concluded that the Spanish system of receivership doesn't work since in 2011 only three out of every 10 insolvencies due to bankruptcy were officially processed. Although the figure has grown since 2007, Spain still has a very low official bankruptcy rate. This suggests that by the time Spanish companies hold a meeting of creditors, the financial situation is already irretrievable.
No comments
To be able to write a comment, you have to be registered and logged in
Currently there are no comments.