Insolvency and Reorganisation law

In many cases, timely measures often make it possible to restructure a business even without judicial insolvency proceedings. We provide assistance to and represent companies in extrajudicial restructuring processes as well as in formal insolvency proceedings in court, in recovery plan proceedings with or without self-administration or in bankruptcy proceedings. The long-standing experience of our entire team, contacts with the competent courts and authorities and cooperation with business information services and audit specialists contribute to our comprehensive advisory services and legal representation of companies before or in a crisis.

Paulian action

The Paulian action is divided essentially into claims outside insolvency proceedings and during insolvency proceedings; the details are laid down in the law concerning acts voidable at the instance of creditors (Anfechtungsordnung — AnfO) and, as part of insolvency proceedings, in the Insolvency Act (IO).  Voiding legal transactions serves as a rule to set aside dispositions of a debtor in respect of his assets to allow creditors to obtain satisfaction from the assets of which the debtor previously disposed of (Paulian action). Such claims may be pursued if the debtor has disposed of the assets with the intention of depriving creditors, squandered the assets, disposed of them gratuitously, or disposed of them to favour a certain creditor or if the creditor was aware of the debtor's insolvency. Depending on the circumstances of the case, complex legal issues may result, e.g. relating to the status of creditors or the ability of creditors to satisfy themselves from the proceeds of the action. We are at your services to guide you through these pitfalls.

Acquisition of companies in insolvencies

Agreements relating to the purchase of a business often govern complex factual issues and processes. Acquisitions of companies within insolvency proceedings are subject to specific legal conditions that allow for an exclusion of certain liabilities for the acquiring parties.

Corporate restructuring

The Law of Corporate Reorganisation roughly follows steps and measures that either lead to an out-of-court reorganisation of the company or to a court-imposed restructuring process. Extrajudicial measures mostly consist of a "silent settlement" or of individual agreements with creditors. In judicial proceedings, we distinguish between recovery plan proceedings with self-administration, which requires a minimum rate of 30% payable in two years, recovery plan proceedings without self-administration with a minimum requirement of 20% within two years and the sale of corporate assets to a rescue company to be established.

Going concern in insolvency proceedings

Legally the liquidator is obliged to continue the business, provided that it is not to the disadvantage of creditors. Going concern requires extensive technical and human resources, especially as far as business administration, costing, tax, organisational and legal matters are concerned. A well-coordinated in-house team with experience spanning several years and immediately available external specialist enable us to continue business operations even in large insolvencies.