Economic uncertainty, rising energy costs and geopolitical upheaval pose existential challenges to companies across all sectors. The number of corporate insolvencies in Germany has risen significantly in recent years. At the same time, the German Act on the Stabilisation and Restructuring Framework for Businesses (StaRUG), reformed debtor-in-possession management proceedings and tried-and-tested employment law instruments are opening up new avenues for the sustainable restructuring of companies while safeguarding jobs. Thanks to our comprehensive expertise, we are able to support you throughout the entire restructuring process – from initial strategic planning to operational implementation.
Your challenges
Our solutions
- Preventive restructuring and early crisis detection (Sections 1, 29 et seq. StaRUG): Implementation of early warning systems in accordance with Section 1 StaRUG and use of the German Stabilisation and Restructuring Framework to avert impending insolvency at an early stage, avoiding the initiation of public insolvency proceedings and keeping the company operational
- Debtor-in-possession management, “protective shield” proceedings and insolvency plans (Sections 217 et seq., 270 et seq., 270d InsO): Managing insolvency proceedings independently, drawing up tailored insolvency plans to secure sustainable debt relief and structuring asset deals for a going-concern sale, utilising the liability relief mechanisms provided for under insolvency law
- Staff reductions and collective redundancies (Sections 1, 17 et seq. of the Employment Protection Act (KSchG), Section 111 of Book III of the German Social Code (SGB III)): Planning and implementation of staff reduction measures in strict compliance with statutory social-points selection criteria and notification requirements, including establishing transfer companies offering transfer short-time allowances to ensure redundancies are managed in a socially responsible manner
- Reconciliation of interests, redundancy plan and works agreements (Sections 111 et seq. of the Works Constitution Act (BetrVG), Section 121 InsO, Section 2 KSchG): Legally watertight negotiation of reconciliations of interests and redundancy plans in the event of operational changes; negotiation of restructuring collective agreements and notices of dismissal with the option of altered terms to adjust remuneration components and working hours, making use of the special fast-track procedures available during insolvency proceedings
- Transfer and acquisition of distressed businesses (Section 613a of the German Civil Code (BGB)): Strategic structuring of transfers of undertakings and businesses, while taking into account the statutory protection of employment relationships, avoiding typical liability pitfalls and complying with the notification duties under Section 613a (5) BGB
- Special duties of directors and avoiding liability (Sections 15a, 15b InsO, Section 43 of the Limited Liability Companies Act (GmbHG), Section 93 of the Stock Corporation Act (AktG)): Advising management on the obligation to file for insolvency, restrictions on making payments once the company has become insolvent, and avoiding personal liability, including the criminal law implications of a delayed insolvency filing