Creditors lead financial restructuring of Spain's Rator Group

In an important development in the insolvency and financial sphere in Spain, Murcia Commercial Court No. 2 handed down Ruling 91/2025 of 6 May, approving the restructuring plan of the Rator Group promoted by its creditors. 

Pre-bankruptcy restructuring

The ruling led by financial institutions and an industrial investor demonstrates the effectiveness of the pre-bankruptcy restructuring mechanisms provided for in Law 16/2022 of 5 September. Through the capitalisation of debt and the reduction of more than €80 million in liabilities, the plan has enabled a change of control, with a Spanish industrial group assuming sole ownership, ensuring the continuity of a key player in the recycling and circular economy sector.

The judgment highlights the proactive role of banks in the use of restructuring tools to avoid liquidation. Despite the opposition of the debtors and partners of the Rator Group, the court dismissed all challenges, confirming the compliance of the plan with the Consolidated Text of the Insolvency Law.

In particular, the court clarified that the special regime for small to médium-sized enterprises is not applicable to subsidiaries of large groups, in line with European legislation and the doctrine of the Court of Justice of the EU. This precedent reinforces the ability of financial creditors to implement restructuring plans, even without the collaboration of the debtor, strengthening legal certainty in complex financial restructurings.

Plan viability

The viability of the plan was a central point, with the court validating the financial projections until 2030. These, backed by debt capitalisation, a debt write-down, a corporate merger to reduce costs and new liquidity provided by the investor (via a credit line), demonstrate a sound strategy for the short to medium-term sustainability of the Rator Group.

The court rejected claims that the plan lacked substantial improvements, noting that a well-founded business plan, even one based primarily on debt reduction (write-down), meets the legal requirements for viability.

Osborne Clarke comment

This case sets a significant precedent for financial institutions managing distressed assets. By successfully leading the restructuring, the banks have not only protected a strategic industrial group, but have also demonstrated the power of coordinated creditor action under the reformed insolvency framework in Spain.

This resolution will likely encourage greater use of pre-bankruptcy tools to preserve value and promote financial stability in similar scenarios.