INSOLVENCY PLAN PROCEEDINGS

Insolvency plan proceedings were introduced as a new restructuring instrument in German law with the coming into force of the Insolvency Code on 1.1.1999. The insolvency plan constitutes a complex settlement managed by the insolvency administrator in which the majority of the creditors – divided into groups and with voting rights in accordance with the amount of their claims – must agree. The insolvency plan is submitted to the insolvency court and, after acceptance by the creditors, confirmed by the court. When this decision becomes legally effective, the insolvency proceedings are concluded.

The objective of the insolvency plan proceedings is to continue the company and thereby to improve the position of the creditors compared with liquidation of the company (usual proceedings). In the insolvency plan proceedings, there is no minimum dividend. The planned dividend must, however, be above that of the normal proceedings. In practice, insolvency plans are so far relatively rarely applied.

Under the ESUG, insolvency proceedings were also amended and extended. Debt equity swap (Sec. 225a Insolvency Code) in which the creditors’ claims can be converted into shares or membership rights in the debtor entity is made possible in the insolvency plan. This provides in practice new, very interesting structuring possibilities. In addition, every other provision under corporate law is permitted. The insolvency plan proceedings are also tightened up with regard to their duration.

Müller-Heydenreich Bierbach & Kollegen considers the restructuring of ongoing business by insolvency plan proceedings being among its strengths. Since the introduction of the insolvency plan proceedings as new restructuring instrument, many companies have so far been rescued and restructured. All insolvency plans prepared by the law firm have been accepted by the creditors usually unanimously and the companies maintained with all or at least the majority of jobs.

The following proceedings are emphasised because of their size or significance

Breakdown by Industries

All Cases from A to Z
INDUSTRY, PRODUCTION, ENGINEERING
  • EnviTech GmbH
  • Kohnle GmbH
  • Mark Meiser Wente GbR
AUTOMOTIVE, VEHICLE CONSTRUCTION
  • Anton Podgorski/Firma TKV
  • Auto Eder GmbH
MEDIA, TELECOMMUNICATION, HIGH-TECH
  • CMS Complete Media Services GmbH
  • TV Werk GmbH
PRINTERS, GRAPHICS, ADVERTISING, MARKETING
  • Buchbindereien und Verlag Buggermann & Simon Wappes GmbH
  • Digitaldruckzentrum DDZ München GmbH
  • Meindl/VMR Druck-Gruppe
MEDICAL PRACTITIONERS, PHARMACIES AND HOSPITALS
  • Dr. H.-G. G.
  • Dr. J. A.
SOCIAL INSTITUTIONS AND ASSOCIATES
  • Kindertagesstätte D.A.
  • Montessori München eingetragener Verein
RESTAURANTS
  • Gasthof Kreitmair GmbH
  • Günter Rosenwirth
  • KarRa Projekt 2 GmbH
  • Wienerwald AG
OTHER
  • Detektei Roberto Pallottini
  • Stumbaum GmbH
  • TRIA IT-solutions AG