Spanish Royal Decree-Law 4/2014, passed on March 7 2014, has considerably changed the rules for the court-sanctioning of so-called Spanish schemes of arrangement. Amongst those changes, the reform has lowered the majorities required to achieve a Spanish scheme. Currently, a majority of at least 51% of the financial liabilities held by all creditors at the time of the refinancing agreement (acuerdo de refinanciación) approval, will suffice to request the insolvency judge to sanction the agreement, so it is considered ringfenced and protected from any challenge for rescission.

The reform has introduced a controversial section referring to syndicated loans to achieve the 51% majority of the financial liabilities.

Section 1 of the Fourth Additional Provision of the Spanish Insolvency Act establishes that all syndicate lenders of a syndicated loan will be deemed to have adhered to the refinancing agreement if at least 75% of them (or a lower percentage if expressly provided in the syndicated loan) have voted for it. Although the act expressly refers to a loan, this should be deemed to refer to all forms of syndicated financings.