Insolvency administration & trusteeship

Insolvency proceedings can be a viable alternative for restructuring companies in crisis. The insolvency administrator takes over the management of the business and the restructuring of the company. As a debtor-in-possession insolvency, the entrepreneur even continues to hold the reins and can benefit from the advantages of insolvency proceedings for themselves and their creditors. Of course, every entrepreneur must observe the mandatory grounds for filing for insolvency, as otherwise there is a risk of personal penalties and liability. Our experts will examine all options together with you.

Managing directors are personally liable in certain cases, particularly in the event of breaches of payment prohibitions after the company has become insolvent. Continuing the business when the company is insolvent leads to considerable criminal and liability risks for the management.

The primary reasons for insolvency are insolvency and over-indebtedness. In the case of insolvency, the ratio of cash and cash equivalents to liabilities due and falling due in the short term is important. In the case of over-indebtedness, the focus is on the company’s asset status and its ability to continue as a going concern in the medium term. Our experts will support you in drawing up a valid budget and examining the grounds for filing for insolvency.

Insolvency proceedings are initiated by filing a corresponding application with the competent insolvency court. Especially in the case of continued business operations, filing for insolvency should be supported by a professional advisor. The insolvency court should be able to assess the necessity of initial measures on the basis of the insolvency petition, e.g., whether a provisional creditors’ committee should be set up and who should be appointed as provisional insolvency administrator.

Once insolvency proceedings have been opened and an insolvency administrator has been appointed, the administrator immediately takes over the administration of the entire insolvency estate. He is responsible for a whole range of tasks, in particular the best possible realization of the debtor’s assets, the examination of the creditors’ claims and the distribution of the insolvency estate.

Timely preparation is particularly important in the case of a debtor-in-possession insolvency. The honesty of the persons involved also plays a major role. Our experts will examine all options together with you.

Yes, in most cases this is true.

Yes, the Insolvency Code provides a number of tools under employment law which can facilitate staff adjustments. Our experts will examine all options together with you.

Yes, this is certainly possible and depends above all on the joint liability of the other group divisions. Our experts will examine all options together with you.

Insolvency courts publish all insolvency announcements on the internet portal www.insolvenzbekanntmachungen.de. Such portal also shows the respective competent courts and insolvency administrators. 

In Germany, the Insolvency Code (InsO) regulates the handling of insolvencies. The Insolvency Code’s overarching goal is to “jointly and equally satisfy” the creditors of an insolvent company. Restructuring options aimed at avoiding insolvency are regulated in particular in the Corporate Stabilization and Restructuring Act (StaRUG).