Kirkland & Ellis’ Groundbreaking Role in Spain’s First Restructuring Plan

Judges recognised this submission for its trailblazing approach to a brand-new legal process, strategic foresight, and successful protection of thousands of jobs in one of Spain’s most strategically significant companies.

Spain’s first-ever restructuring plan
In a bold legal manoeuvre, Kirkland advised the creditor group to file Spain’s first-ever restructuring plan just moments after the enabling legislation came into effect. 

This swift and strategic action allowed creditors to drive the restructuring, pre-empting any debtor-led attempt to dilute their influence. 

Judges noted the entry as “groundbreaking” and praised the firm for being “at the cutting edge of European restructuring.”

Safeguarding

Celsa, Europe’s second-largest steel producer, was facing imminent insolvency. The creditor-led plan, structured by Kirkland, secured the company’s future, and protected approximately 9,500 jobs. 

One judge remarked: “Successful outcome with 9,500 jobs saved,” while another said, “Brand new legislation, well executed, protecting a vast number of jobs with strong client feedback.” 

The Barcelona court ruled the plan delivered a “substantial financial improvement” and cleared the path to viability.
 
A politically sensitive rescue
This was no routine restructuring. The plan was strongly contested by the founding family shareholders, culminating in an unprecedented seven-day sanction hearing. 

The case was politically charged, with Spanish government oversight and regulatory scrutiny, making successful navigation even more notable. 

Judges called it “impressive and large in scale” and praised Kirkland’s capacity to execute under intense pressure and ambiguity.

How to restructure
This restructuring not only reshaped Celsa’s future, but also helped define how Spanish courts would approach creditor-initiated restructuring plans.

It set key precedents in interpreting Europe’s preventive restructuring directive, likely influencing similar cases across the EU. 

One judge reflected: “Good evidence of a firm at the cutting edge of European restructuring. The example was good.”

All details are based on Kirkland & Ellis’s TRI Awards 2024 submissions.