Legal Appeals Delay Assegurances Generals Bankruptcy Asset Auctions

Legal appeals filed by the bankrupt parties in the Assegurances Generals case are delaying the auction of seized assets, complicating efforts to compensate creditors.

The insurer was declared bankrupt by the Batllia in 2019, prompting the freezing of assets owned by its former directors. Preparations for the first auctions began in 2022 to repay those affected, but repeated legal challenges from the bankrupt parties have slowed progress.

Judicial administrator Saig Xavier Granyó, overseeing the liquidation, stated that the process remains active despite the obstacles. Some auctions have already taken place, with assets adjudicated and notarised for new owners. However, others have been paused as a precaution against the bankrupt parties' constant opposition.

"The procedure continues, but for prudence some auctions are paused," Granyó told Diari d'Andorra. He emphasised that no court ruling requires the halt, and the delays aim to prevent buyers from facing months-long blockages due to further appeals. In one instance, a challenge led to the nullification of an adjudication, preventing the buyer from completing the purchase—a rare occurrence amid several successful sales since 2019.

Granyó described the six-year process as more complex than anticipated, owing to the bankrupt parties' strategy of contesting every step. He noted their right to do so under Andorran law, calling the system "very protective" with necessary safeguards. Earlier, the bankrupt parties sought to repurchase all assets, but the Batllia rejected the bid; they have now appealed to the Constitutional Tribunal, with a decision expected in coming months.

A group of French creditors has criticised the asset valuations as undervalued, prompting a complaint to President Emmanuel Macron. The bankrupt parties claim the total value reaches €200 million—enough to cover all debts. Granyó rejected this, arguing that overly high prices deter bids and reflect unrealistic assessments. He warned that such actions risk "poisoning" the process, scaring off buyers and potentially lowering sale prices, which could reduce funds for creditors.