Andorra Court Annuls Creditors' List Approval in Assegurances Generals Bankruptcy

The Superior Court of Andorra has annulled the final approval of the creditors' list in the Assegurances Generals bankruptcy, granting the former owners a hearing before it is validated again.

This ruling requires the process to backtrack to that specific stage, ensuring the ex-owners' right to review documentation. However, liquidator Xavier Granyó emphasised that it does not alter the ongoing asset liquidation or scheduled auctions and transfers of seized properties.

Granyó noted that the former owners must now receive all requested records, including details on recognised credits, pending amounts, and accounting elements. This allows them to verify the credit distribution and assess whether the total debt could decrease upon review. The overall liabilities exceed €80 million, while available assets are valued at around €52 million, creating a deficit of more than €30 million according to the court administration. The bankrupt parties dispute this, arguing the assets' true value would cover the debts.

The case, open for six years, has left hundreds of creditors—many having lost significant savings—still awaiting recovery. Granyó warned that the decision could spark new lawsuits if discrepancies arise, aligning with what he described as the ex-owners' strategy to delay proceedings. He added that prolonged disputes might deter buyers, slowing property transfers and injecting uncertainty into the liquidation timeline.

Despite these concerns, Granyó stressed the ruling introduces no practical changes beyond the hearing requirement, as Andorran bankruptcy procedures include safeguards for transparency and all parties' defence rights. The Superior Court found that approving the list without prior debtor input violated principles of contradiction, defence, and equality.

Creditors, including Spanish, French, and Andorran nationals, have formed a group pushing for full, swift debt recovery and criticising judicial delays. They highlight challenges in valuing assets—initially appraised in 2019 amid property market shifts—and suggest an independent expert valuation, factoring in recent real estate price rises confirmed by a government report. A creditors' right-of-reply also pointed to potential conflicts, such as scrutiny over a past insolvency administrator previously hired by Assegurances Generals.