In-court restructuring proceedings are important tools for successful restructuring. These tools can assist in breaking deadlocks in order to find agreement and the right condition to conduct the restructuring, especially in complex situations.
There are several in-court restructuring proceedings, which provide tried and tested avenues for successful restructuring.
Moderation of negotiations and confirmation of consensual agreements in court
Financial restructuring, with or against opposing creditors, according to StaRUG (German corporate stabilisation and restructuring law)
Court-supervised self-administration proceedings to restructure the business with effective tools according to the Insolvency Code
Insolvency proceedings managed by a court-appointed administrator can be a fast and efficient way to restructure
Professional preparation and a solid restructuring concept are key prior to commencing restructuring proceedings. Time, communication, management of operations and implementation of required restructuring measures are crucial during each restructuring proceeding.
Our expert team assists companies in stabilising operations and helps to determine the best restructuring procedure for each individual case. We take care of the required preparations and navigate through the preferred proceeding as an advisor or principal, from beginning to successful completion.
Proceedings: Non-public, independent procedure according to §94 ff. StaRUG, which allows implementation of consensual restructuring agreements with limited risk of disputes in future insolvency proceedings.
Advantages: Non-public procedure, limitation of liability and dispute risks for involved parties – in particular new financing partners – in future insolvency proceedings
Proceedings: Non-public restructuring procedure according to StaRUG (German corporate stabilisation and restructuring law), which allows the restructuring of certain financial obligations even with dissenting creditors. The key element is a solid restructuring plan and concept.
Advantage: Non-public procedure, protection against enforcement by individual creditors, cram-down of dissenting creditors
Proceedings: Protective shield and preliminary self-administration proceedings are preliminary insolvency proceedings under German law. Existing management remains in charge in both proceedings, but both the management and proceedings are supervised by a trustee and the court.
Advantage: Existing management remains in charge, efficient implementation of restructuring measures (termination of contracts, layoff of staff, closure of plants or business units, financial restructuring possible even with dissenting creditors)
Proceedings: In contrast to the other restructuring proceedings, a court-appointed administrator takes control (preliminary insolvency administrator in charge prior to the opening of insolvency proceedings). The appointed administrator takes charge to stabilise the debtor and maximise the outcome for all creditors. Restructuring of the debtor will be completed by an asset deal or insolvency plan after the insolvency proceedings have opened (typically three months after filing).
Advantage: Restructuring option, if critical creditors do not support any of the other restructuring proceedings or the requirements of other restructuring proceedings cannot be met; avoidance of potential conflicts of interest, unbiased and independent party is involved
Comprehensive experience in all restructuring proceedings and proven ability to cope with their challenges.
Professional assistance to navigate through the process step by step.
We do not crave recognition. Our entrepreneurial perspective will provide solutions in the best interest of our client.