Finance and Banking Lawyers
Our team of Lawyers has broad experience in the management of financial and banking disputes
Financial and banking disputes mainly concern the possibilities and issues that have both companies and particulars to finance themselves. In other words, financial and banking disputes concern the problems given in situations of cash flow stress that lead to imminent insolvency, problems derived from non-payment of loans, problems related to the interpretation of the clauses of a loan or a financing contract, the enforcement of guarantees, the analysis abusive clauses in consumer contracts, among many other.
In general terms, funding sources are vital for any company, so the conflict that arises may require a quick solution. Sometimes, the company may have to waive certain rights to solve the conflict rapidly.
The different claiming procedures available for financial entities, that hold the creditor’s position, are not exempt from risks. Over the last years, the Spanish courts have considerably developed case-law applicable to financial contracts such as loans, swaps, foreign exchange, etc. Likewise, when it comes to financing a company, bankruptcy regulations, refinancing agreements, the constitution of guarantees, the classification of credits, etc. must be taken into consideration.
We can say that in recent years there has been a great regulatory and case-law movement affecting financial conflicts.
“Experts in the legal assessment and management of banking and financial conflicts, since 1941”
LEGAL EXPERIENCE
More than 78 years of experience giving legal advice and defending companies, individuals, and groups certifies the legal path of Giménez-Salinas Law Firm. An invaluable experience that we apply to all our cases and clients.
MULTIDISCIPLINARY
Throughout our professional experience, we have handled hundreds of conflicts in many different sectors and areas of law. We have a highly qualified and multidisciplinary team of lawyers and attorneys.
PERSONALIZED
One of the characteristics that define us is offering our clients a personalized service, our clients are informed on every stage of their cases and have a direct relationship with the lawyers or attorneys who handle their affairs.
BANKING AND FINANCE DISPUTES
Down below we describe the most common disputes on baking and finance.
DISPUTES BETWEEN A COMPANY AND FINANCIAL ENTITIES
The common problem lies in the company’s inability to pay the installments of a loan, which may or may not have guarantees, being those real or personal. In such cases, a negotiation phase begins with the financial entity with the aim of solving the dispute quickly. Time plays against the company given that every day that goes by the company will have more difficulties to pay and its situation will become more deteriorated. A great part of these negotiations’ success lies in offering the bank an alternative but still attractive plan that will allow the company to obtain more time or additional funding. Guarantees may as well come into play, such as mortgages on real estate, machinery, pledges of rights, pledges of assets, or personal guarantees like deposits from partners or directors. Moreover, the insolvency scenario and the advantages offered by insolvency legislation in terms of refinancing must be taken into account, as perhaps the most appropriate strategy involves the judicial approval of a refinancing agreement.
CONFLICTS BETWEEN SHAREHOLDERS REGARDING THE FUNDING OF THE COMPANY
On occasions, companies have contributions from shareholders that don’t form part of the capital or equity but are considered as long-term loans. Most of the time, these contributions are not documented in a contract and are simply recognized as liabilities (and sometimes not even that). The problem can arise when the shareholders wish to recover the contribution made. Such conflicts require a great knowledge of accountability, in order to prove that such contribution is an enforceable liability. Some other times, the conflict arises from the necessity for shareholders to make contributions, but some are willing and some others are not. In these cases, it is advisable to carry out a capital increase, but taking into account that some shareholders may object.
DISPUTES BETWEEN A COMPANY AND A VENTURE CAPITAL ENTITY
When the fundings have been obtained from venture capital entities or professional funds, remuneration formulas are usually used and connected to the company’s results. The conflict often arises on how the results are accounted for, as depending on how certain items are accounted for, the investor’s return may be lower.
CONFLICTS DERIVED FROM BANKING AND FINANCIAL PRODUCTS
Contracting complex financial and investment products, such as investment funds, bonuses, preference shares, swaps, securitization, etc. have been extended to a wider public. This has generated significant litigation in this area. We have extensive experience in this type of litigation, particularly defending financial institutions and securities agencies.
DO YOU HAVE BANKING AND FINANCIAL CONFLICTS?
LEGAL TOOLS TO MANAGE BANKING AND FINANCIAL DISPUTES
THE CONTRACT
A financial dispute always arises from a contractual relationship between the contracting parties. Therefore, the first tool for good management of disputes is the contract itself. In these cases, the contract is a guideline for the contracting parties, which means that if the contract has foreseen all the possible conflicts between the parties, and offers as well solutions, this can lead to ending the conflict. We always recommend that the financing contract is drafted, or at least revised by a specialist in this matter, given that occasionally it can seem complete, but it is necessary to value if in the future the clauses of the contract will unfold all its effects, or if they will cause interpretative problems.
NEGOTIATION
Mainly in the cases in which time plays against our client, negotiation has to be the most appropriate option, and even the only one to consider to solve the conflict. Even though it may be necessary to waive rights or advantages that would have been obtained in a judicial phase, sometimes it can be more important to obtain a refinancing agreement or additional funding in a short time, rather than to extend the conflict to obtain something more but later.
EXTRAJUDICIAL TOOLS
The contract may contain some tools to solve the disputes, such as turning to a third party to issue a report on the conflict, mediation, or even arbitration. It will be possible as well to consider the legal tools from shareholders disputes, that can help, if the dispute is given within a company.
JUDICIAL TOOLS
The financial conflict can lead to judicial procedures of a very different nature. From an ordinary execution or a foreclosure of some guarantees to the discussion regarding abusive clauses and transparency, or even the start of a procedure to challenge social agreements or to claim responsibility against a director. It is as well possible to solve such conflicts through special procedures such as insolvency proceedings.
ARTICLES ON FINANCE AND BANKING
The firm advice a board of directors.
The firm advises the board of directors of a credit financial institution on the legal challenges of its relationship with the Bank of Spain, consumer regulations and the latest legislative developments that directly affect its business. A partner of the firm is a...
Transaction agreement with a banking institution
We have recently reached a transactional agreement with a bank in a matter of pledged shares by a foreign client. The conflict was that the bank blocked the order of sale of our client's shares because of the pledge, producing a price depression. The agreement has...
Defending a banking institution
The firm has recently obtained a favorable judgment on Swaps, as the Provincial Court understands that, in the specific case, the financial institution had accredited the fulfillment of the duty of information to the client. This ruling is important since it is...
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