Pre-insolvency advisory


Preserving value before and during insolvency.

Pre-insolvency advisory is intended to help you gain an overview of your business’ current situation. The primary objective is first to clarify what stage of the crisis your company finds itself in and whether you are required to file for insolvency. According to the German Insolvency Statute (Insolvenzordnung; InsO), there are three grounds for insolvency filing, each of which call for different types of solutions:

Requirement to file for insolvency

  • Insolvency pursuant to InsO Section 17
  • Overindebtedness pursuant to InsO Section 19

Right to file for insolvency

  • Imminent insolvency pursuant to InsO Section 18

No requirement to file for insolvency

  • Pre-insolvency recovery

During the pre-insolvency recovery process, it is possible to rescue the company without entering insolvency. This is generally achieved by creating a recovery report in accordance with German Institute of Public Auditors standards (IDW S6) and having liquidity supplied by investors or selling assets to release liquidity.

Alternatively, there is the option of restructuring the company while in insolvency. In particular, insolvency with debtor-in-possession management can be a useful instrument to restructure liabilities or dispose of loss-making activities.

Our services

  • Reviewing the necessity of insolvency filing under law, taking into account case law from Germany’s highest court and lower-ranking creditors
  • Identifying possible solutions outside and inside of insolvency
  • Preventing and reducing liability risks for management

How you stand to benefit

  • Explanation of the advantages and disadvantages of recovery inside and outside of insolvency proceedings in a debtor-in-possession framework
  • Ability to deal with complex legal issues and explain the impacts for you and your business
  • Summary of options for action

Projects

Siebert & Möller

Continuation
through sale to an investor

Asset Deal

Machinery
Aug 2018 - Oct 2018

Butlers GmbH & Co. KG

Dual track investor process with debtor-in-possession management

Financial Advisor
Sell-Side
Commerce
Sep 2017

Contact partners

Markus Tränkle

Partner
  • T: +49 211 54 76 63 15
  • M: +49 173 30 44 721
  • markus.traenkle@falkensteg.com

Sebastian Wilde

Partner
  • T: +49 211 54 76 63 12
  • M: +49 173 92 39 453
  • sebastian.wilde@falkensteg.com

Tillmann Peeters

Managing Partner
  • T: +49 211 54 76 63 11
  • M: +49 174 37 06 600
  • tillmann.peeters@falkensteg.com

Further Insolvency advisory services