Stages

The liquidation process develops in accordance with that which is established in Law 30/1995, following the format below:

Stage I

Start of the liquidation.

Information to creditors.

Receipt of claims from creditors.

Drafting of provisional balance and determination of the percentage to be paid out to Insurance Contract Creditors.

9 months (maximum duration).

Stage II

Purchase of credits.

Realisation of assets.

Establishing of liabilities.

Lodging of claims, actions, suits, etc.

Drafting of balance and liquidation plan.

2 to 3 years (estimated duration).

Stage III

Holding of Creditors' Meeting.

Payment to creditos.

Extinction of the entity.

6 months (estimated minimum duration).

Stage I. Maximum duration of 9 months.

  • This is started by taking possession of the entity. It includes the closure of branch offices and the sealing of the entity's head office.
  • The collective redundancy agreement is negotiated, establishing the number of people required for carrying out the liquidation and proceeding with the dismissal of the rest of the workforce.
  • Announcements are published in the media and letters are sent to the insured parties, advising them of the liquidation and in particular if the expiry of policies is to be brought forward
  • A period is established for the presentation of claims by creditors.
  • Receipt of said claims.
  • An inventory is taken and corporate documentation is collected.
  • A provisional balance is prepared which includes profits envisaged by Law, whereby the Board of Directors of the CCS will approve the percentage to be paid out to creditors for each policy.

Stage II. Duration of 2 to 3 years, depending on the volume and the branches in which the company in liquidation was operating.

During this time the CCS acquires credits for policy holder creditors as and when files are closed and in accordance with the percentages established by the Board.

Meanwhile, the company's assets are disposed of and legal action is taken, as required, to address liabilities that may have arisen and recoup assets from same.

Stage III. Minimum duration of the liquidation plan (payments to creditors) in a single period: 6 months. Duration of the liquidation plan (payments to creditors) in two periods: unspecified.

When there are legal proceedings pending so as not to prejudice creditors, the liquidation plan is carried out in two periods, whereby existing cash assets are paid out to creditors during the first stage, and whatever is obtained from the aforementioned legal proceedings is shared out in the second stage.

The procedure starts with a Creditors' Meeting that approves the liquidation plan. Once this has been ratified by the Directorate-General of Insurance and Pension Funds, the creditors are paid out in accordance with the percentage of the credit that they hold of the company's assets and liabilities. The final balance is then published and the company is extinguished or removed from the Special Register of Insurance Entities in the Directorate-General of Insurance and Pension Funds and in the Mercantile Register.