Spain registered in July, the first month after the end of the bankruptcy moratorium, a total of 774 bankruptcy proceedings and 1,790 dissolutions in Spain, according to the Study on Bankruptcy and Dissolution carried out by Informa D&B.

This represents a rise for contests of 25% year-on-year and 32% compared to the previous month, reaching the highest figure since March 2014, according to the report published this Wednesday.

“The end of the insolvency moratorium decreed by the Government has had a certain impact on the number of insolvencies in July, which exceeds 700, something that has not happened since 2014,” explained the Director of Studies at Informa D&B, Nathalie Gianese.

The number of ‘express contests’ grows

In 2020 and 2021, the number of companies that submitted the joint application for bankruptcy and extinction, known as express bankruptcy, has been growing. 2020 ended with 54%, in 2021 it reached 65% on average and during the first six months of 2022 it has not dropped below 65.5%. In July it exceeded 72%, the highest proportion since January 2020, which shows, according to Gianese, “that many companies were waiting for the end of the moratorium to file for bankruptcy and simultaneous liquidation.”

Of the total bankruptcies recorded in July, almost 87% corresponded to micro-enterprises, about 12% were from small companies, just over 1% to medium-sized companies, and two large companies filed bankruptcy proceedings this month.

Industry and Commerce, the sectors where contests grow the most

In July, Commerce, Construction and real estate activities and Industry were the sectors that registered the most contests, 182, 163 and 107, respectively. The latter is the one that grew the most in absolute value, with 47 processes more than the same month last year, followed by the 40 added by Commerce.

On the contrary, with fewer contests than in July of last year are Other services, with 9% less, Health (-45%), Business services (-4%), Energy (-57%), and Extractive industries, that has not registered any contest this month.

27% of the contests started in July are located in Catalonia

Catalonia is the community where the most bankruptcy proceedings were registered in July, with 204, 27% of the national total. It is followed by Madrid and the Valencian Community with 141 and 129, respectively, in the month, although it is the latter that suffers the greatest increases, 43 more in July.

On the other hand, in July the contests only go down in the Canary Islands, the Balearic Islands, Madrid and La Rioja.

The “Bankruptcy Congress 2022ยป de Lefebvre will be held on September 29 and will be key to knowing how the Government’s bill has evolved, the modifications in different bankruptcy institutions and the change in the model in insolvency management in which judicial intervention is diluted or the agreements that avoid insolvency liquidations are strengthened.