The Express Insolvency Before the Imminent Closure of a Company

Many companies sometimes face the need to close their doors due to random or practical insolvency in the commercial world, and even because of exceptional situations such as the current coronavirus pandemic. In order not to perpetuate such a harsh procedure as the extinction of a company any longer than necessary, the advantages of express insolvency can be used.

The solution to the arrival of the inevitable

In addition to having a significant effect on the natural course of daily human life, the Covid-19 crisis has meant a great unevenness for technology companies. While some sectors, such as streaming video and social networks, have been able to take advantage of the confinement, other technological stages suffer from a precipitous decline in their liquidity as a result of the quarantine. This scenario has been caused by the almost total paralysis of consumption beyond basic necessities and by the painful uncertainty about the business, social and economic future of the world. In view of the imminent fall, there is a way for US companies with subsidiaries in Spain to close a company without having to liquidate their assets quickly.

The so-called concurso express is a legal way to terminate a company immediately. Taking insolvency or the absence of assets, or that these are residual, as requirements, this procedure of between four and ten weeks duration is faster than an ordinary bankruptcy. The time taken to close down is an essential factor to take into account, assuming that the decision to close a business also carries an emotional burden. It is ,therefore, preferable to finish and settle as soon as possible. Similarly, to do so without legal or bureaucratic obstacles or impediments, it is necessary to call on a local strategic consultancy that supports the company’s management throughout the process.

Advantages of the express competition

Although it is an atypical competition, this procedure is prevalent in emerging companies and start-ups, as it has a greater propensity for the imbalance due to the complexity of adding its freshness among large and experienced businesses. However, its applicability also competes with the needs of companies with little or inadequate funding and even for businesses without much infrastructure. Be that as it may, differences between the express competition and an ordinary competition should be mentioned to speed up an already tough procedure.

The advantages of the express competition would be based on the pillars of time, cost and responsibility. First, the insolvency proceedings in this procedure are declared and concluded at the same time, which avoids prolonging the time of the procedure. Secondly, there is no insolvency administrator due to the absence of assets and, therefore, service costs are reduced. And thirdly, given the absence of an insolvency administrator as mentioned, no rating piece is opened. In other words, there is no declaration of either randomness or guilt, so there is no need to assume bankruptcy liability. Moreover, given the situation, the debts are not directed towards the company’s administrator.

Support and advice from experience

As mentioned, it is necessary to have the services and experience of a legal and economic consultancy. The professionalism of these individuals will help us carry out this procedure in the most concise and agile way. This is where a good team of professionals should come in, like the ones that Dipcom Corporate is founded on. Dipcom Corporate is a Spanish consulting firm specialized in companies in crisis and whose services in express competition happen cleanly and relentlessly. The company also offers solutions for crisis management and the restructuring and refloating of companies. They have their methodology, which has been put into practice for 12 years and has multiplied the number of successful cases by 20%.

His team has the background of the renowned international expert Igor Ochoa, a chartered economist and graduate of the University of Wolverhampton (Birmingham, UK), with 15 years of experience in managing financial teams, business units and companies in many sectors. He specializes in business angels, scouting and mentoring entrepreneurs, and as an expert in business crisis management. He is a figure who, together with the rest of the team, contributes to finding the best solution for any company that has decided to close despite the insistence of intent and the impetus of constancy.

These are challenging times that decide the future of every one of our lives. The course of the moment never understands about extensions, and it is, therefore, primordial to look for the best option to make the extinction of a company as safe, easy and fast as possible. Facing a challenging stage is much easier if the end guarantees all the security that can be covered and mostly when the evil that plagues the life expectancy of a company attacks almost with impunity from the randomness and the errancy requiring immediacy and urgency.

by Sergi Garcia

About RJ Frometa

Head Honcho, Editor in Chief and writer here on VENTS. I don't like walking on the beach, but I love playing the guitar and geeking out about music. I am also a movie maniac and 6 hours sleeper.

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