Restructuring for companies

Reorganization and restructuring.

The realignment or restructuring of a failing company is a complex challenge, as the causes of the crisis can be extremely diverse, ranging from unforeseen market changes to internal operational difficulties. In such situations, a comprehensive reorganization and restructuring of the company may become unavoidable.

Remediation strategy.

As experienced experts in the field of corporate reorganization and restructuring, our first step is to develop a comprehensive and targeted reorganization or restructuring plan for your company. In doing so, we attach particular importance to using the instruments provided by the legislator (such as restructuring settlement, stabilization order, restructuring plan and protective shield proceedings) in the best possible way to your advantage and for the benefit of your company.

Our analysis focuses on identifying the reasons for the financial difficulties and on realigning your company.

Restructuring plan.

Whether it is due to inadequate internal structures or a market upheaval that leads to a sudden drop in sales, financial crises in a company have specific causes to which you must respond appropriately.

The restructuring plan contains targeted proposals for optimization. This can include adapting internal processes, increasing efficiency by optimizing business processes and reviewing and, if necessary, realigning your business objectives and market orientation. At the heart of these measures is the creation of a marketing and financial plan, which is often also a prerequisite for accessing support from federal, state and EU funding.

Negotiations with your creditors often take place during this process. If no amicable solution can be found, the new Corporate Stabilization and Restructuring Act (StaRUG) offers numerous instruments to bring about a solution nonetheless.

Take advantage of subsidies.

The German government alone provides over 400 different subsidies for the restructuring of ailing companies. In addition, there are also subsidies from the federal states and the European Union.

However, in order to be able to use these funds, it is generally necessary to prove that you are entitled to make use of them. As a rule, this requires the creation of a well thought-out restructuring plan that shows that you have developed a viable concept for rescuing your company. We support you in identifying potentially suitable funding and meeting the necessary requirements for a successful application.

Further instruments of restructuring.

Out-of-court vs. court proceedings:
The restructuring of a company can take place at various legal levels. If economic difficulties are identified at an early stage, out-of-court proceedings with experienced management consultants and auditors should be the method of choice. We can support you with a competent and experienced team.

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.

Objective of the self-administration proceedings.

Self-administration is a separate type of procedure under the Insolvency Code. Even after various reforms, the legislative aim has remained to support the self-restructuring of the company owner by retaining the power of self-administration and disposal. In contrast, standard insolvency proceedings provide for the transfer of the power of administration and disposal to an insolvency administrator after the opening of proceedings.

Self-administration proceedings are characterized by the duality of the debtor, possibly represented by management bodies on the one hand, and the administrator on the other. The debtor retains the power of administration and disposal (unlike in standard insolvency proceedings).

Variants of self-administration.

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.

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.

Get in touch with us. Together, we will find the right solution for your needs.