Andorra Court Partially Upholds AGA Ex-Owners' Appeal, Orders Bankruptcy Hearing

Andorra's Superior Court has partially upheld an appeal by the former owners of Assegurances Generals d'Andorra (AGA), overturning the definitive approval of the insurer's bankruptcy credit list and requiring a dedicated hearing for the appellants before any re-approval.

The final and enforceable ruling directs the judicial administration to supply Amadeu Calvó Casal, Núria Boronat Gomà, and Jaume Calvó Boronat with copies of all credit-related documents, including data from the company's IT systems, at their expense. The court stressed that asset liquidation proceedings face no interruption and may proceed as planned.

The appellants had contested the approval, claiming it infringed their rights to defence and due process. Judges ruled that finalising the list without a debtor hearing violated principles of contradiction, defence, and equality of arms, particularly given its direct bearing on their assets. While the 1969 Decree lacks explicit provision for debtor input at this stage, the decision invokes constitutional standards and fair trial rights to address the omission.

The credit list establishes the final extent of bankruptcy liabilities, shaping the debtor's obligations with potential repercussions beyond the process itself. The court dismissed demands for total nullity, noting the appellants had accessed provisional lists, submitted objections, and seen those reviewed judicially. It limited relief to mandating the hearing, which requires sufficient access to accounting and contractual data for meaningful input—essential in a complex insurer with substantial operations.

AGA came under Andorran Financial Authority intervention in November 2019 amid solvency shortfalls impacting over 500 parties, sparking six years of disputes. Judicial administrators peg assets at €52 million against more than €80 million in liabilities, yielding a deficit exceeding €30 million.

The former owners insist AGA remained solvent at bankruptcy. Their lawyer, Alfons Clavera, referenced a 2019 Grant Thornton audit showing net assets of €22.3 million (or €12.6 million conservatively), with €61.1 million in assets versus €48.5 million in debts. A 2017 insurance law granted five years to convert mostly illiquid real estate via bonds and share sales, a step they say was in motion.

Valuations diverge sharply: after the March 2025 creditors' meeting, administrators list assets at €22.3 million—nearly €40 million below 2019 figures—and liabilities at €65 million. The appellants challenge the 2019 bankruptcy declaration, 2025 assessments, and credit list, citing €15 million in duplicates and unjustified amounts. Clavera pegs current company assets at €55 million against €50 million in debts, plus €50 million in personal holdings, and resists sales below 2019 levels.

Clavera described the outcome as addressing a "purely formal" issue, with clients complying but awaiting rulings on evidence access, credit objections, asset valuations, and creditor solutions. He urged ongoing caution.

The batlle must now hold the hearing for appellants and potentially impacted creditors before revalidating the list, likely delaying timelines amid active asset auctions and prolonging the legal battle.