Giving boards of directors more control over insolvency proceedings.
Debtor-in-possession management is a judicial reorganisation mechanism. It emerged following the introduction of the German Act on the Further Facilitation of the Reorganisation of Companies (ESUG) and is an important aspect of modern insolvency law.
As an alternative to standard insolvency proceedings, a company or a creditors’ committee can apply to the court for debtor-in-possession management.
Here, too, acting in a swift, orderly manner is essential for success. Filing a request in good time and presenting well-founded reasons explaining why debtor-in-possession management is the best approach increases a company’s likelihood of being granted legal protection from claims being enforced against its assets.
Where required, we can also assume responsibility as an additional chief restructuring officer (CRO). In these cases, too, we focus our attention on reorganising companies in a way that maximises the chances for the business to survive. Our highly professional and dedicated approach means that we do everything we can to rescue the company, save jobs and satisfy the interests of creditors to the greatest extent possible.
What you need to know about debtor-in-possession management
- Unlike in standard insolvency proceedings, the board of directors continues to manage the company itself
- The court appoints a custodian to support and supervise 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
- (Preliminary) debtor-in-possession management begins with the careful preparation of the insolvency petition and the proceedings themselves
- Since debtor-in-possession management is a special form of standard insolvency proceedings, it is also governed by the provisions of the German Insolvency Code
- To ensure that the reorganised company remains successful in the long term, support is often recommended even after the debtor-in-possession proceedings have come to an end