Distressed Spanish companies have become targets of investors during the last few years, in part because new legislation has introduced tools to enhance out-of-court and in-court restructurings. In addition to considering the financials of the target companies and the business case behind each investment, investors in distressed debt in Spain must carefully assess the investment under Spanish law. In a guest article, Ignacio Buil Aldana, partner at Cuatrecasas, Gonçalves Pereira, highlights the key considerations hedge fund managers should regard when approaching Spanish distressed investments. Specifically, he outlines the rules that address subordination of claims and lender-shareholder relationships, including the rights of existing shareholders under Spanish law. For more on distressed investing, see “Investment Strategies, Considerations and Uncertainties of Distressed Debt Investments by Hedge Funds” (Apr. 9, 2015); and “Strategies for Handling Government Investigations, Challenges for CCOs, Distressed Debt Investing” (Dec. 5, 2013).