self-administration insolvency germany

The insolvency law in Germany has been subject to radical changes during the last years. The creditor committee and creditor meeting approve the important decisions, and the insolvency court monitors the proceedings (see question 3.6 above). In the case of "insolvency protection proceedings”, an insolvency plan is drawn up for the restructuring of the company within a maximum period of three months from the time of the insolvency application. Adler Modemärkte AG / Key word(s): InsolvencyAdler Modemärkte AG: Application for the opening of insolvency proceedings in self-administration10-Jan-2021 / 21:05 CET/CESTDisclosure of an inside information acc. Self-administration is an institution that has rarely been applied in practice in the past. All insolvency proceedings in Germany are governed by the Insolvency Act ... self administration and regular insolvency proceedings is the role of the insolvency professional: in regular insolvency proceedings, the insolvency administrator assumes control of the debtor’s business Proof that these preconditions have been fulfilled is to be provided as part of a restructuring expert report. The preparation and performance of the insolvency proceedings in the form of self-administration places special requirements on the quality of the financial accounting. Each member of the RSM network is an independent accounting and consulting firm, each of which practices in its own right. Insolvency plan proceedings and self-administration – both often combined in practice – aim at restructuring the debtor’s business. They will support you with the optimization of the existing financial accounting, prepare liquidity plans based on insolvency law assumptions, draw up the insolvency application and compile a restructuring expert report in accordance with Article 270b para. endstream endobj 29 0 obj <>stream Lehmann: The new option introduced by ESUG, the so called ‘protective shield proceedings’ (‘Schutzschirmverfahren’), means that a debtor, who is not yet illiquid and can provide an expert opinion that the proposed restructuring is not evidently futile, can request that the insolvency court allows a self-administration for a period of up to three months, during which time the debtor has to present an … Self-administration is granted only in situations where the court is of the belief that the rights of creditors will not be endangered by the self-administration. The possibility for the debtor to conduct the insolvency proceeding and restructure the company via self-administration – an option that had already existed under the former regime – was only allowed by the courts in exceptional circumstances. German insolvency law is governed by a comprehensive Insolvency Code which entered into force on January 1, 1999 and has been amended from time to time, the last major reform being the Act for the Further Facilitation of the Restructuring of Companies (ESUG) which largely came into force as of 1 March 2012. German Insolvency Law – an overview. We recommend that you use an up-to-date browser to increase your security and to be able to use all the functions of the RSM website. Subscribe & start reading now! Germany’s new insolvency law (ESUG), established in 2012 reinforces the idea of insolvency proceedings as a lawful restructuring process. Finally, in 1999 the new Insolvency … Self-administration can be used in both insolvency proceedings and the insolvency plan procedure (see above, Insolvency proceeding and Insolvency plan procedure). Germany: On January 28, 2021, the German legislator adopted the further extension of the suspension of the obligation to file for insolvency in the event of over-indebtedness and illiquidity until April 30, 2021.To benefit from the (further) suspension, the affected company must file an application for financial aid in the period of November 1, 2020, until February 28, 2021. – Number of self-administration proceedings since the ESUG was introduced in March 2012..... 62 – Ranking of the Top 10 Law Firms in 2017 ..... 63 – Ranking of the Top 10 Law Firms, First Six Months of 2018..... 63 Insolvency Courts in Germany, Offices of Schultze & Braun Applications for self-administration proceedings now require that the debtor provides (i) a finance plan for the next six months, (ii) a specific concept how the self-administration shall be conducted and what goals shall be reached with what measures, (iii) a description about the … Under the ESUG, the self-administration process shall be improved. endstream endobj startxref Introduction to German Insolvency Law. German insolvency law offers companies the option of restructuring in insolvency procedures under their own management.. h�bbd```b``�"k�d��"5o�H���5���Ձ$���-�"�������f�� U 1�?�G ,>] However, only the debtor can apply for a protective shield proceeding, and only in combination with an application for self-administration. |ƴn���3�_ v� �����NO���8�XO�.�A/Qk�G�n�{i 9h<8�h����Dse���z��h��V"�����"� �ZD1Ԗriͦ��2�:�@���]FW�Qe����w���ڥ�d��&�DS�}������.uF��h5�/�z�ȥ of the German Insolvency Code (InsO). e.GO Mobile filed for a preliminary self-administration procedure in early April this year. From pv magazine Germany Germany-based Nice Solar Energy has opened the proceedings for self-administered insolvency at the Heilbronn District Court, in Germany. x^�}{|T���3s���B�@ 7�6 �A�lB��=@BQ ��UEn�K���Z��4�-XT� German solar company, Schletter GmbH has filed for insolvency proceedings in self-administration at the district court of Mühldorf, southern Germany. of the German Insolvency Code(InsO). UPDATED: A German clothes retailer with international stores has filed preliminary insolvency proceedings, marking the first test of Germany’s newly strengthened self-administration rules. Protective shield proceedings (section 270d, German Insolvency Code) are similar to a preliminary insolvency proceeding in self-administration. Take advantage of the support provided by our experienced restructuring experts. %%EOF Self Administration (“Eigenverwaltung”, comparable to the debtor in possession known from Chapter 11 U.S. Bankruptcy Code) meanwhile has found its place in Germany’s restructuring and insolvency practice, whether in the form of "normal" self-administration or in the … Upon request, our experts will support the executive management for the entire duration of the insolvency proceedings. In order to make debtor-in-possession proceedings more appealing, the requirements for granting self-administration will be … Usually, the executive management of the company is supported for the duration of the proceedings by an external restructuring consultant. This should result in the creation of a … The requirements for entering into self-administration proceedings (Eigenverwaltung) have become stricter. 1 sentence 3 InsO. Flöther & Wissing has strengths in self-administration, insolvency administration and administration of assets, while it also carries out liquidations of group insolvencies. In insolvency proceedings, an insolvency administrator or, in self-administration, a custodian manages the liquidation of the debtor’s assets and the distribution to the creditors. 38 0 obj <>/Filter/FlateDecode/ID[<0D2D000D660D7F4DAA6803FEDE75E2F3><76F951766A7DCB4B95C3A429A06C66C0>]/Index[25 46]/Info 24 0 R/Length 81/Prev 143742/Root 26 0 R/Size 71/Type/XRef/W[1 3 1]>>stream Germany is close to making a huge step towards international best practice for restructuring. However, the court will nominate an insolvency trustee (Sachwalter) that will oversee and advise the administration of the company. Self-administration allows the debtor, under the supervision of a trustee, to manage and dispose of the insolvency estate (section 270 (1), Insolvency Code). For almost two decades a reform of the national bankruptcy law, codified in the Bankruptcy Act of 1877, was discussed and prepared. e.GO Mobile announced that it is suspending production and all development activities for the month of July, “to protect the insolvency […] �ѵ�F�\��(A݀2�4�^{��O�OE��E�T6���J�˩���n�C�i�s��*�B7"��TC;���_DS㤹�. For further details of the German formal proceedings, see 6 Statutory Restructuring, Rehabilitation and Reorganisation Proceedings and … Given the existing experience with insolvency plan proceedings and the increased acceptance of German in-court restructurings by way of self-administration/ protective shield proceedings, Germany is very well placed in putting in practice a framework which appears to be both, well elaborated and well received by the market participants. The new German Insolvency Code also allows self-administration (Eigenverwaltung) as a bankruptcy procedure. The appointment of an insolvency administrator will be dispensed with for self-administration. On 19 September 2020, the German Ministry of Justice published a draft bill introducing a new stand-alone preventive restructuring process, accompanied by targeted amendments to insolvency law and related areas. Insolvency proceedings have now opened in Germany for the assets of the electric car manufacturer e.GO Mobile under its own administration. RSM GmbH Wirtschaftsprüfungsgesellschaft Steuerberatungsgesellschaft is a member of the RSM network and trades as RSM . Restructuring within the framework of so-called insolvency protection proceedings pursuant to Article 270b InsO is only possible if the company is (still) insolvent and restructuring worthy. … GRR is a daily information service providing cross-border insolvency and restructuring news, features and events. Since there are no restructuring proceedings regulated by statute in Germany, only insolvency proceedings can be initiated. Under the new legislation, self-administration proceedings can also be combined with protective shield proceedings, which are specific preliminary insolvency proceedings for a period of up to three months which should be used to prepare an insolvency plan in order to restructure the crisis shaken business of the German enterprise. x^M�;�0��=R���4� F���ڦT8����P=}��[���cWy��< s_ζC�B[�}�V�F���lNP8���8_���֟+�0h\5t��p����'e�)殥(}�����H4��\h�s�����/ The StaRUG both complements the existing procedures under the German Insolvency Code (“ InsO ”), which already includes the possibility to restructure in self-administered proceedings on the basis of an insolvency plan, and “filled the gap” for pre-insolvency restructurings, since until the end of last year there was no legal framework in Germany for solutions outside formal insolvency proceedings. %PDF-1.5 %���� Legal background Working with an experienced insolvency lawyer will provide the guidance needed when applying for self-administration and the protective shield proceedings. This is so-called self-administration in accordance with Article270 ff. The RSM network is administered by RSM International Limited, a company registered in England and Wales (company number 4040598) whose registered office is at 50 Cannon Street, London, EC4N 6JJ. The motion for self-administration must be filed within the first stage forinsolvency for the court to be able to appoint the trustee instead of the administr… RSM is the trading name used by the members of the RSM network. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this … 25 0 obj <> endobj With expertise in self-administration and regular insolvency proceedings, Dr Beck & Partner GbR Rechtsanwälte advises on the implementation of restructuring and reorganisation plans and prepares the sale of insolvent companies to strategic investors. Keywords: Germany, insolvency law, challenge rights, The insolvency challenge rights give the insolvency administrator, under certain prerequisites, access to assets which the debtor disposed of to the detriment of the creditors prior to the filing for insolvency, thus increasing the insolvency estate. Plant construction and machinery manufacturing, Current status of the enforcement of the GDPR, Information and help for companies in Germany, Residence and labour migration law: What Britons in Germany have to be aware of since 1 January 2021, Questions as the Brexit Transition Period Draws to a Close, The 10 most important changes due to Brexit for VAT and customs, Trade and cooperation agreement between the EU and the United Kingdom enters into force. In the case of self-administration, the executive management is under the supervision of a liquidator appointed by the insolvency court. January 2021 - The management board of Adler Modemärkte AG filed an application for the opening of insolvency proceedings in self-administration pursuant to Section 270a of the German Insolvency Code with the local court of Aschaffenburg on 11 January 2021. This is so-called self-administration in accordance with Article270 ff. This way the company’s management will conduct the administration of the assets following the insolvency procedures. Overview of the self-administration and insolvency plan procedures By Volker Böhm, Attorney-at-Law in Germany and Certified Specialist in Insolvency Law; Insolvency Statistics By Volker Böhm, Attorney-at-Law in Germany and Certified Specialist in Insolvency Law; Event Calendar, Venues and Dates on Insolvency Law in 2019 The initiation of insolvency proceedings always presupposes the filing of an insolvency petition. The RSM network is not itself a separate legal entity of any description in any jurisdiction. Such a petition can be filed either by the insolvent debtor or by a creditor. The local court has consequently approved preliminary self-administration today. Self Administration German insolvency law offers companies the option of restructuring in insolvency procedures under their own management.. Renowned name partner and practice head Lucas Flöther held a particularly high-profile role as insolvency administrator of the airline Air Berlin; in this case, around 6,000 employees and one million creditors are affected. Under the new legislation, self -administration proceedings can also be combined with protective shield proceedings, which are specific preliminary insolvency proceedings for a period of up to three months which should be used to prepare an insolvency plan in order to restructure the crisis shaken business of the German enterprise. All rights reserved. endstream endobj 26 0 obj <> endobj 27 0 obj <>>>/Rotate 0/Type/Page>> endobj 28 0 obj <>stream We have detected that you are using an outdated browser. Code in 1999. The ESUG aims to strengthen self-administration. h�b```c``�f`f`p7dd@ A&�(ǂ�@�u���0 pC1�E��V����0�u�g���������I.��h` A� This results not least in liability minimization on the part of the executive management. Its work frequently includes employment law aspects such as the implementation of personnel deployment planning. 1. © 2020 RSM International Association. �jo�V�Z�U ��>sΆ��Ѷ���gw��g�g���<3s’ �(�"��S���ݐ�֗D� ��xڜ+g�rS��OW_y�MӾ|�7��bʈ䨊���߻��D�;�gq�[�����W̚{������D=ʯ�=e�y�f����W̚t㜸1UD7�y�k���8:t�������M�@��%Ꙕ@d~ 0 70 0 obj <>stream The brand and trademark RSM and other intellectual property rights used by members of the network are owned by RSM International Association, an association governed by article 60 et seq of the Civil Code of Switzerland whose seat is in Zug. 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