Foreign investors with business activities in Germany
, who are involved in a commercial restructuring of the company
or in an insolvency case
can address to our team of German attorneys
, who can provide legal assistance in accordance with the situation experienced by the business at that specific time. The German insolvency legislation
is provided by the Insolvency Act
, which has been amended by the Act of Further Facilitation of the Restructuring Companies, applicable since 2012.
Insolvency legislation in Germany
According to the legislation for insolvency
cases, the German law
stipulates that the insolvency procedure
is applicable in the same manner to both natural persons and legal entities. Insolvency cases
can be claimed against individuals or companies, but several business domains, such as banking, falls under a special category which prescribes different rules, under the German Banking Act
; insurance companies
are also considered special entities, with a different insolvency procedure
Insolvency procedures prescribed by the German legislation
Our team of German attorneys
can assist local and foreign investors involved in an insolvency case
for both of the stages of this process, which are divided into two categories:
• preliminary insolvency proceedings;
• final insolvency proceedings.
A company in Germany
can become insolvent when the business has reached a stage in which the management is required to file for insolvency
in order to avoid financial liabilities that will fall under the personal responsibility of the representatives of the company. This stage is referred to as a preliminary insolvency proceeding
, which will be held in front of the Germany Insolvency Court
Final insolvency appears when the Court establishes that the debtor can’t pay its debts up to an established deadline or that the debtor is illiquid.
Restructuring legislation in Germany
According to the legislation provided by the Insurance Act, a company can start its restructuring plan when it faces a challenging situation (a financial crisis or any other type of situation that isn’t reliable for the sustainability of the business). As such, companies can start the restructuring process, which is applicable only with the authorization of an insolvency administrator.
If you need further information on the restructuring and insolvency legislation
applicable in Germany
, please contact our team of German attorneys
for legal advice or legal representation.