Insolvency

Insolvency

Do you need support with an insolvency in self-administration or in protective shield proceedings? We are at your side with our expertise as a consultant or as an interim manager.

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Insolvency: an opportunity for a fresh start

Insolvency: an opportunity for a fresh start

Since the jurisdiction was completely reformed in 2012, insolvency is no longer synonymous with the liquidation of a company. Today – with insolvency in self-administration or the so-called protective shield procedure – the focus is on the sustainable restructuring of a company. However, for these tools to be effective, a detailed and promising restructuring concept is required and the timeframe for this is short. In addition, the operational business requires full attention, especially in times of crisis. We will be happy to support you on your way out of the crisis and assist you in implementing the legal requirements in a timely and legally compliant manner.

Insolvency in self-administration

In so-called self-administration proceedings, the company management remains with the managing director. Only a trustee is appointed to assist the management as a supervisory body. To enable you to successfully re-establish your business, we work alongside you with crisis experience, carry out a quick and precise analysis of the causes and develop a promising restructuring plan. This plan must be well-founded and resilient, as it will later be put to the creditors for approval in the insolvency proceedings. The proceedings only end if they agree. The basic prerequisite for insolvency under self-administration is an early application.

Some advantages of insolvency under self-administration

  • The Federal Employment Agency pays wages and salaries for up to three months in the form of insolvency money, as it does in normal proceedings
  • No VAT has to be paid in the opening procedure
  • Payment must only be made for goods that are delivered after the application has been submitted

How we support you in insolvency (selection):

How we support you in insolvency (selection):

The protective shield procedure as a special form of self-administration

The protective shield procedure is also an insolvency procedure, even if it is often presented differently in the press. It can only be initiated if the company is not yet insolvent (time of application) – according to the legislator, this is intended to encourage early application. A certificate from a third party with experience of insolvency is required (usually an auditor, lawyer or tax consultant). This certificate must confirm that the company is not insolvent and that the intended restructuring is not obviously hopeless.

It should be preceded by a well-founded business analysis and the corporate planning should demonstrate that the company is capable of being restructured. This includes profit, financial and asset planning, statements on the causes of the crisis, risks of restructuring, approaches to restructuring capability, explanations of the competition and the industry situation, order planning and detailed liquidity planning.

Within a short period of up to three months, the management then draws up a restructuring plan – free of enforcement measures and also under the control of an appointed provisional administrator, who the company itself may propose. The entrepreneur continues to run the business independently. He is still authorized to dispose of the company.

After insolvency: the right approach to restructuring

Once the restructuring plan has been accepted by the creditors, an important hurdle has been overcome. However, the points in the plan must be implemented consistently to ensure the company’s long-term recovery. We support companies with transparent monitoring. We are also happy to help with implementation or improvements at any time.

Further services at
Crisis counseling

Further services at
Crisis counseling

Restructuring & reorganization

As soon as signs of a crisis appear: ABG Consulting provides you with uncomplicated and expert support for restructuring and out-of-court reorganization.
Read more here

StaRUG

Would you like to examine a StaRUG procedure as an option? Or do you already need specific support in an out-of-court restructuring? Our experts are at your disposal.
Learn more

Interim Management

Would you like to concentrate on your operational business even in difficult times? As interim managers, we bring external expertise to your company.
Learn more

Are you looking for a partner with crisis experience to support you during and after insolvency?
Get in touch with us right away!