Restructuring & insolvency
Business management advice on insolvency applications in self-administration or in standard proceedings:
The right path in a crisis
Filing for insolvency is often the last chance to stabilize the company or to wind it up in an orderly manner. The decision between self-administration and regular insolvency is crucial for the continued existence of the company. Our business management advice will help you choose the best steps to maximize your room for manoeuvre and strategically shape the process.
Out-of-court vs. court proceedings:
Alternatively, there are two judicial options: the StaRUG and judicial insolvency proceedings. We will be happy to explain the details and options in detail. In the majority of cases, the StaRUG will probably not open up any meaningful application options. Insolvency proceedings under self-administration could then be an option.
When does self-administration make sense?
Self-administration offers you, as the company management, the opportunity to continue running the business during the insolvency proceedings instead of placing it in the hands of an insolvency administrator. This means that you retain control of your company while implementing restructuring measures together with a trustee and under court supervision. This option is particularly useful if a viable restructuring plan is already in place and there is a good chance of preserving the company.
When is the standard procedure the better way?
Sections §§ 270 et seq. InsO have already regulated two alternative opening proceedings since the ESUG reform, provisional self-administration (now section § 270b) and the protective shield (now section § 270d). In contrast to the restructuring framework of the StaRUG, these are (provisional) insolvency proceedings.
a) Protective shield
The so-called protective shield in section § 270d InsO provides for a restructuring-oriented modification of the provisional self-administration proceedings. The debtor, possibly represented by its executive bodies, is granted a largely binding right of proposal with regard to the provisional administrator to be appointed (section § 270d (2) InsO). The proceedings have a positive external effect, as many parties involved and the public assume that these are primarily restructuring proceedings and not insolvency proceedings.
b) Provisional self-administration
The ordering of provisional self-administration is regulated in section § 270b InsO. It requires the debtor to have submitted the documents and presentations specified in section § 270a InsO and to have made the required declarations. Compared to the previous law, the requirements that the debtor must fulfill are more extensive, which consequently also leads to greater examination requirements for the insolvency court. Section § 270c InsO contains further procedural regulations. This provision deals in particular with the obligations of the debtor and the provisional administrator, insofar as the latter has been appointed by the insolvency court.
Our services:
- Advice on self-administration
Support with the decision and implementation of insolvency under self-administration.
- Filing for insolvency in standard insolvency proceedings
Professional support during the standard insolvency proceedings.
- Restructuring plans
Development and review of viable restructuring concepts.
- Negotiations with creditors
Support in negotiations to reduce insolvency burdens.
The right experts.
With the right experience and the right steps, experts are important to ensure that no time is lost and the company is restructured quickly and successfully. Our tax law firm specializes in self-administration in insolvency proceedings and cooperates with a close and well-established network of trustees, lawyers and reorganization and restructuring consultants, all of whom have extensive experience and expertise in various sectors. With this network, we operate successfully throughout Germany.
Avoid legal pitfalls and make the most of your opportunities. Get in touch with us.