Spain's Court Clears Subhasta Auctions for Bankrupt Andorran Insurer Assegurances Generals

A ruling by Spain's Constitutional Court has cleared the way for subhasta auctions of assets seized from the bankrupt Assegurances Generals insurance company, ending a judicial standoff that had stalled proceedings.

The decision, issued on 19 January, dismissed a challenge brought by the former owners and backs the appointment of Xavier Granyó as co-administrator alongside the Autoritat Financera Andorrana (AFA). It also endorses the approach taken by Andorra's Batllia court in liquidating the assets. The claimants had argued serious violations of fundamental rights, including the right to defence, lack of a reasoned decision, breach of the contradiction principle, and the legality of Granyó's appointment. They sought to annul all resolutions issued since November 2019, but the court rejected the appeal in full.

Granyó, speaking to Diari d'Andorra, confirmed the verdict restarts all halted operations. "It means everything that was on hold has been reactivated," he said, adding that subhastes of the embargoed assets will now proceed normally to aid victim compensation.

The pause in auctions was not court-ordered but a precautionary measure, Granyó explained. Administrators halted adjudications to avoid reversals if the court ruled in favour of the former owners. "Since 2019, when the bankruptcy began, we have managed the case diligently and always believed justice would rule in our favour," he noted.

This is not the first time bankrupt parties have challenged the process, Granyó said, pointing to repeated legal delays that have slowed progress. "They make the procedure more difficult," he remarked, noting the impact on a case now stretching six years without closure in sight.

The restart offers hope for creditors affected by the insurer's collapse, though Granyó stressed the administration's ongoing commitment to a thorough wind-down.