On 1 March, 2012, the new German ESUG law (Act for the Further Facilitation of the Restructuring of Companies) came into force. This was designed to make the restructuring of companies easier and contained far-reaching changes to the insolvency act. The main focus of the insolvency law reforms is to make it easier for companies to be restructured by giving creditors greater influence in the appointment of the insolvency administrator, and the possibility of self-administration already in the opening stages by means of the so-called Schutzschirmverfahren (similar to voluntary administration in GB). Furthermore, the process of insolvency planning was made more practicable so that this restructuring tool gained in significance.
In addition to this, the EU Commission is planning a compulsory framework for new pre-insolvency processes for restructuring in insolvency law for the fourth quarter of 2016.
As soon as a liquidity crisis occurs, managers and boards of directors are at considerable risk of personal liability.
We can give you specialist advice, exploring all the possibilities for restructuring with you and drawing attention to liability risks.
It is our goal — even in the event that insolvency is unavoidable — to give you the best possible advice and support for your company’s restructuring.