Additional problems in the event of bankruptcy of a temporary joint venture (Unión Temporal de Empresas – UTE).
In specific cases of bankruptcy of companies making up a Spanish temporary joint venture - UTE, irregularities have arisen causing direct damages to the creditors of the UTE. These may be summed up in the following two points:
As a result of the coincidence of both areas of negligence, the administrators do not send the UTE’s creditors notification in order to present the debt. In these cases, the creditor should act within the bankruptcy procedure and this type of action may bring about an advantage, as the debt will be deemed as an extreme privileged.
1. If the enterprise is economically viable, its continuance is facilitated, along with the payment of debts owed to the creditors.
2. If the enterprise is not economically viable, it is wound up in an orderly manner, allowing the creditors to repay their debts. As far as possible.
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