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Why it’s right for activist investors to rely on the SEC rules allowing the disclosure of material information on social media

In April 2013, the Act Governing Private Sector Participation in or Operation of State Activities (2013) was published. The Act supersedes the 1992 version, which presented several issues for parties wishing to enter joint investment contracts with state-owned enterprises. These issues include an unclear and overlapping authority of several government regulators, with the National Economic and Social Development Board (NESDB) refusing to play a significant role, and substantial delays and increased costs in project approval, with no clear definition of what constitutes a state-owned enterprise. In addition, the old Act does not provide for contract renewals or amendments, or the scope of discretion for project approval.

Ignacio Buil Aldana Act 14/2013, of September 27 2013, favouring entrepreneurs and their internationalisation (the Act), has introduced a wide range of reforms on several insolvency, corporate, tax and labour matters. Regarding insolvencies, the Act (among other changes) significantly reduces the quorum of financial creditors required for court-sanctioned refinancing agreements. It also includes a new out-of-court device in order for debtors and creditors to reach payment agreements binding dissident creditors. With respect to the court-sanctioned refinancing (the so called Spanish scheme), the Act lowers the 75% (of financial debt) support threshold required under additional provision 4 of the Insolvency Act to court-sanction a refinancing agreement to a mere 55%. Further, the Act clarifies that that quorum be superimposed on the quorum required for refinancing agreements under article 71.6 of the Insolvency Act (60% of total debt, including financial debt), in line with both doctrine and case law. This reform is aimed at facilitating Spanish schemes by simplifying and lowering the threshold to reach the relevant majorities. This, of course, may have an effect on existing and future Spanish restructurings even if other key issues such as the ability to cram-down secured creditors is still uncertain, despite relevant developments in this regard (such as the Celsa case).

There was a time when the heady combination of economic liberalisation and technology seemed fated to drive ever-increasing volumes of goods, capital and people across borders. Global cross-border capital flows, for example – including lending, foreign direct investment, and equity and bond purchases – rose from $0.5 trillion in 1980 to a peak of $11.8 trillion in 2007, according to the McKinsey Global Institute.

The UK government’s questionable strategy to transform London into an offshore RMB hub

The lighter side of the past month in the world of financial law

Matthew Bromberg,

One of Europe's senior political figures has said that small and medium-sized enterprises (SMEs) will not provide the region with the major funding required to return it to growth.

Still the poster child for equity market reform

Given it is the world's biggest economy, the US is in an unusual position. It is working to attract foreign investor interest. While states have long competed for foreign direct investment (FDI), the US government is becoming more involved after the October shutdown and its near-default shook investor confidence.