On the road to reorganisation: self-administration as an effective instrument.

Stronger position of the management in insolvency proceedings

Self-administration is a court-authorised restructuring measure. This procedure, which dates back to the German Act to Further Facilitate the Reorganisation of Companies (ESUG), is an important instrument in the canon of modern insolvency law.

As an alternative to standard insolvency proceedings, a company or a creditors' committee can apply to the court for self-administration.

Quick and orderly action is also a criterion for success: filing an application at an early stage and providing well-founded reasons open up the possibility of legal protection against enforcement against the company's assets.

If necessary, we also assume responsibility as an additional Chief Restructuring Officer (CRO). Of course, in cases of self-administration, our focus is also entirely on reorganisation with the prospect of continuation. With great professional and personal commitment, we do everything in our power to preserve companies and jobs and to satisfy creditors' interests in the best possible way.

The special features of self-administration

  • In contrast to standard insolvency proceedings, the management continues to run the company itself
     
  • The court appoints a custodian to support and monitor the board of directors – we also have extensive practical experience in performing such a role
     
  • Support from experts with experience in insolvency administration is the best guarantee of success
     
  • The (preliminary) self-administration proceedings begin with careful preparation of the insolvency application and the proceedings
     
  • The provisions of the Insolvency Code are also binding in self-administration.
     
  • In order to achieve sustainable restructuring success, it often proves useful to provide support beyond the end of the self-administration proceedings

Our services:

[Translate to Englisch:] Unsere Leistungen
  • Analysing the causes of the crisis and identifying the (performance and financial) restructuring measures to be taken
     
  • Determining the ideal time to file for insolvency
     
  • Preparation of a reorganisation concept including short and medium-term liquidity, earnings and personnel planning
     
  • Examination of the securities of banks, suppliers and other third parties and ensuring that the securities are considered in the proceedings
     
  • Preparation and implementation of insolvency money pre-financing for covering employees’ wages
     
  • Preparation and implementation of the insolvency plan and / or M&A process
     
  • Preparation and implementation of internal and external communication
     
  • Identification of management liability risks
     
  • Setting up a schedule and the team

Your added value at glance:

[Translate to Englisch:] Ihr Mehrwert auf einen Blick
  • The management of your company remains largely authorised
     
  • No public disclosure is initially made by the courts
     
  • More positive external impact than in standard insolvency proceedings because the business partners still face their trusted contacts in management
     
  • Staff can continue to focus all their efforts on day-to-day business operations, while we take care of the tasks relating to the insolvency proceedings
     
  • Advice and, wherever feasible, support from a custodian or (additional) chief restructuring officer (CRO) from one of Germany’s leading insolvency law firms
     
  • Transparent, authoritative and professional communication to build trust among creditors, employees and the public
     
  • Ensuring transparency and predictability of the process for everyone

The protective shield procedure offers numerous advantages if liquidity is still available - above all decisive simplifications and shortening of the proceedings

Examples of our successful involvement in self-administration proceedings:

Selected references

Your Contact Partners