Self-administration offers insolvency debtors the opportunity to restructure their company independently during insolvency, with the established management remaining in office. They are supported by a FalkenSteg interim manager experienced in insolvency matters as CRO or general representative. There are two basic forms of self-administration:

Self-administration in accordance with section 270b InsO:
The company is continued independently by the debtor. In insolvency proceedings opened under self-administration, the debtor assumes the role of (provisional) insolvency administrator under the supervision of a (provisional) administrator. The continuity of management and the absence of an external insolvency administrator send a positive signal to the market. The cooperation between the existing management and FalkenSteg's insolvency expertise increases the efficiency of the reorganisation measures initiated.

Protective shield proceedings pursuant to section 270d InsO:
Similar to self-administration in accordance with Section 270b InsO, the debtor continues to operate the business. However, the basic prerequisite for applying for protective shield proceedings is that there is only the threat of insolvency in accordance with Section 18 InsO. As part of self-administration in accordance with Section 270d InsO, an insolvency plan is to be drawn up with the aim of preserving the legal entity and opening up the possibility of operational and financial restructuring.

In the context of self-administration, various tasks are involved in the continuation of the company. In addition to the operational management of the company, a wide range of insolvency-specific measures must be implemented during self-administration proceedings. This leads to additional work for the company.

In an already tense operational situation, this can quickly lead to employee overload. FalkenSteg supports you in various types of proceedings. Whether in self-administration according to § 270b InsO or during protective shield proceedings according to § 270d InsO. In this way, the company's human resources are deployed as efficiently as possible and the additional expense caused by the insolvency is minimised.

We help you to understand the complex requirements of insolvency law and to integrate the resulting implications into your daily business processes, e.g. in ordering and approval processes or the delimitation of operationally necessary expenses.

In addition, we take over communication with all relevant stakeholders, such as suppliers, customers, trustees and the insolvency court for insolvency-specific issues.

The insolvency application in self-administration or the certificate in protective shield proceedings is of particular importance.
In protective shield proceedings, this shows that there is only a threat of insolvency or over-indebtedness and that the intended reorganisation is not hopeless.

In the course of filing the application, the administrator who monitors the debtor's reorganisation efforts must be selected in the protective shield proceedings. In addition to monitoring, the trustee also accepts claims and sets up the insolvency schedule. In protective shield proceedings, the administrator can be selected by the company itself; he or she only needs to have the necessary expertise in insolvency law. This advantage does not exist in self-administration proceedings; although the company can propose a trustee, the decision-making authority lies with the competent court.

We support you in preparing the insolvency application and drawing up the certificate for self-administration as part of the protective shield proceedings in accordance with Section 270d InsO. We also negotiate the insolvency application before the insolvency court on your behalf and support you in selecting a suitable administrator. The company's expertise in insolvency law is usually documented by a general representative appointed by FalkenSteg. This person plans, structures and manages the insolvency proceedings for the management remaining in office.

In co-operation and agreement with the management, the restructuring measures are described in the insolvency plan in order to successfully overcome the crisis. The insolvency plan must be submitted to the creditors and accepted by a majority of them.

The insolvency plan enables a type of realisation, distribution, liability and handling of the proceedings that deviates from the standard proceedings. The insolvency plan serves to find the best solution for the parties involved, independent of the rigid regulations of the standard procedure, and to define it in a binding manner. The realisation of the insolvency estate, the distribution of proceeds to the creditors and the handling of the proceedings as well as the liability of the debtor after the end of the insolvency proceedings can be determined in an insolvency plan in deviation from the provisions of the Insolvency Code.

In protective shield proceedings pursuant to Section 270d InsO, the insolvency plan must generally be submitted within three months. This deadline can be extended upon request.

We work with you to draw up the insolvency plan and the necessary integrated corporate planning. We also manage the process of forming creditor groups and seek contact with the main creditors in order to obtain broad agreement. Our services also include handling the proceedings, e.g. communication with the court, submission of plans and the plan monitoring phase.