Following the financial market crisis it has been and still is an increasing number of companies including individually owned companies, family-owned enterprises and groups – unfortunately also in Germany – which are affected by the consequences of this crisis. A growing number of companies have no other option than going into insolvency proceedings if and when the crisis jeopardizes or annihilates their ability to continue their business operations and survive. Although German insolvency law in these days provides for better options than did the former „bankruptcy“ law, a turnaround or reorganization for example by sale or of certain parts of a company in an endeavour to thus avoid insolvency, can only be successful in cases and situations where the company can benefit from particularly favourable general underlying conditions.
The two most visible aspects of a company crisis, that is to say inability to pay its debts and/or capital deficit are indicative of the final stadium only, which is usually preceded by a long-lasting process: a sequence of frequently several phases (decline of sales, losses, consumption of equity capital, debts, liquidity squeezes, financial difficulties, combined with debt deferral agreements and instalment payment agreements).
Having a great deal of practical experience in this legal field we assist you, the managing director, the Executive Officer/Chief Executive Officer (CEO) or owner, in order to help you avoid doing things which contain the risk of personal liability – particularly in the „minefield“ which has to be gone through for as long as some months prior to the filing of the petition for adjudication of insolvency.
Our counsel and advice accompany a company’s officers that is to say managing directors or Executive Officer or the Board of Directors, in the case of enterprises which are legally obliged to file a petition for adjudication of insolvency such as for instance „GmbH“ (i.e. limited liability companies under German law), GmbH & Co. KG (limited liability company & Co. – limited partnership), „AG“ (joint stock companies), as well as major individually owned companies with employees, with our lawyers doing this in the form of crisis-relevant advance counselling, e.g. concerning insolvency law generally speaking, policy to be followed in relation to creditors, liability, notice of termination, sale by auction, letter of comfort, loans which legally replace equity capital, letter of subordination, waiver of receivable, etc.
We shall in cooperation with your tax consultant make an analysis concerning the development and the economic and financial status of your company based on your company or shareholders’ agreements or articles of association, your annual accounts, totals and balances lists, wage costs schedules, accounts receivable and purchase register, etc., also in consideration of potential consequences which are due to legal reasons, all the way to the filing of a petition of insolvency. If the latter were to prove to be necessary as a result of intensive consideration of the balance of chances and risks, we shall, together with you, draft the petition of insolvency, initiate insolvency proceedings, represent you in insolvency petitioning proceedings, in insolvency-instituting proceedings and after the opening of insolvency, and we shall help and support you in your negotiations with the judicial administrator or creditors.
In the Nuernberg area our office’s work in the field of insolvency law is focussed on company and legal entities’ insolvencies. If you need our counsel in a context with questions or problems concerning private or consumer insolvency, possibly also a discharge of residual debt and respite for costs of proceedings, or if you wish to have our support and accompaniment, Mr. Andreas Becker, lawyer in our Wuerzburg offices will be pleased to help you.