Funds and debt restructuring in Spain

The position of funds or institutional investors regarding Spanish restructuring regulation is not consistent, and depends mainly on the strategy of each of such investors. Debt funds are concerned about the regulation of restructuring plans, while those buying financially distressed businesses are more interested in the regulation on the transfer of production units. There is a third group, that of buyers of distressed debt portfolios, who are generally less interested in these matters, their main concern being the insolvency of individuals and the release of unpaid debt, both of which have a significant impact on their rate of return.

This paper summarises our conversations held with different types of investors, and it is focused on their views on debt restructuring as completed in Spain since the end of 2022, leaving everything else aside. The group of funds interviewed was limited, so this document does not reflect the opinion of the entire sector and, even though we agree with the input of many of the interviewees, we do not always share their views.