Different procedures depend on the debtor, the stage of the crisis and the objective. Interim measures and the opening of proceedings are stages of a process, rather than interchangeable restructuring models.
Companies and restructuring
- Business crisis and restructuring
- Corporate insolvency: applications and options
- Ordinary insolvency proceedings in Germany
- StaRUG: restructuring outside insolvency
- Debtor-in-possession proceedings: Eigenverwaltung
- Protective-shield proceedings: Schutzschirm
- Insolvency plans and restructuring
Individuals, groups and cross-border cases
- Cross-border insolvency and foreign creditors
- Deceased estates and special insolvency estates
- Group insolvency and coordination
- Consumer insolvency: eligibility and procedure
- Discharge of residual debt in Germany
Protecting participants and assets
- Late insolvency filing: deadlines and liability
- Directors‘ liability in insolvency
- Defending insolvency clawback claims
- Creditor representation in insolvency
- Security rights and recovery of property
- Buying a business out of insolvency
- Insolvency-related criminal proceedings
- Employment and insolvency benefit
- Contracts, brands and licences in insolvency
- Attachment protection and protected accounts
- Insolvency courts, jurisdiction and remedies
- The German Insolvency Code: a practical guide
Special situations
Insufficient estate assets, termination of proceedings and supplementary distributions have different legal consequences. Administrators, supervisors, courts and lawyers for participants perform different roles. Regulated businesses such as banks and insurers may additionally be subject to special recovery and resolution regimes.
Practical implementation
Select the route by financial position and objective
Selection starts with whether insolvency grounds exist and what duties follow. Out-of-court arrangements, StaRUG, ordinary proceedings, debtor-in-possession and insolvency plans can then be compared. A protective shield is not synonymous with debtor-in-possession. An insolvency plan may also be used outside that procedure. For individuals, consumer or ordinary proceedings and discharge require separate assessment. Estates and corporate groups introduce further questions about assets and responsibility.
Compare concrete requirements
Funding, time, creditor structure, operational viability and the intended changes determine suitability. A route may fail if it cannot legally deliver the necessary change or cannot be prepared in time. Costs and organisational capacity also matter. Creditors assess expected recoveries, security, information and influence. A sound decision compares realistic alternatives and their conditions rather than selecting the most attractive label. Dependencies and downside scenarios should be recorded so the decision can be revisited if circumstances change.
Four practical examples
The following scenarios are illustrative examples, not reports of client matters. The outcome depends on the facts and applicable rules.
Example 1: A future funding gap emerges
A company pays current debts but expects an uncovered loan maturity. A workout and StaRUG may be compared. Operational measures, funding and the possible future onset of insolvency grounds must still be monitored.
Example 2: Actual illiquidity exists
The company cannot meet due obligations. Filing duties take priority over preference for a particular procedure. Ordinary restructuring or suitable debtor-in-possession proceedings may be examined; the protective shield is unavailable where actual illiquidity already exists.
Example 3: A creditor receives a plan
A supplier receives a restructuring or insolvency plan. It must first identify the instrument and its effects. Classes, majorities, comparisons and remedies cannot simply be transferred from one legal framework to the other.
Example 4: Estate and company assets are confused
A deceased business owner leaves shares and personal debts. Estate liabilities and company liabilities need separation. Proceedings concerning the company do not automatically resolve the heir's liability position.
Discuss your situation
Tell us your role, the parties involved and any deadlines. We will check conflicts, agree the scope of the work and explain the fees before accepting instructions.