The Bankruptcy Act will come to the aid of contractors
The Government shall amend the Bankruptcy and standard procurement. Correct the different legal treatment to contractors, forced to stop when entering the contest.
The Commission prepared the reform of the Insolvency Act, to be ready next summer, is working to make the new text will help companies that contract with the public sector to enter into competition, as the existing Bankruptcy Law and the Law Public sector contracts leave them in the lurch and do not allow them to continue working in insolvency. With the reform, these companies want, like the rest, to maintain operations. To do this, you will need to also amend the Law on Public Sector Contracts.
This, bearing in mind that often is the very slowness of the Administration which leads the competition from these companies. And the purpose of the standard bankruptcy-both current and from which it is prepared to help companies with a contest that involves being bailed and not liquidation, what is done with other companies. After all, the number of competitions in the fourth quarter of 2009 was increased by 42% over the same period in 2008 and came to 6,000 in the year.
The Commission Chairman, James Howard, General Technical Secretary of the Ministry of Justice says that it has been found that the Law on Public Sector Contracts Part of automation that goes against the criterion of the bankruptcy reform, “he says. Nuances that will help companies from the “guarantee public interests and the administration, that is,” will seek the balance of interest for companies that wish to maintain their activity.
Thus, Howard concretes “changes will be made both in the bankruptcy laws as the Law on Public Sector Contracts. And detail that “the Commission has closed the overall analysis of the bankruptcy reform and has already entered the bottom of the articles to change. Counting on the relevant reports (CGPJ, Council of State, etc.) estimates that “could be ready after the summer. Miguel Angel Alonso, Roca Junyent partner, adds that this reform “was a cry” between the companies, who fled the sector.
For Raquel Ballesteros, a partner at Bird & Bird, “the different legal treatment to private contractors and, in cases of insolvency of its contractors is hardly sustainable, legally and morally: although the general interest allows for differences in favor of the Administration, they must respond to an objective need (as it considers the Constitution).
Ballesteros said that “only in the field of health supplies the Administration’s debt exceeds the 4,000 million with a payback period of 232 days.”
Finally, Antonio Fernandez, partner in charge of Zone Restructuring and Insolvency Garages concluded that “thee opportunity for reform is greatest.”It is disconcerting that he contributes to the cause competitions to get out of them leaving the company without activity and preventing it from bidding for new contracts while in bankruptcy situation,” says this newspaper’s questions
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Tags: Bankruptcy Law, Civil courts, court, Court Management, Federal Judiciary Council, Law Public sector