Germany: Financial Restructuring

German insolvency law's principle of equal creditor treatment faces a critical challenge through Section 131 of the Insolvency Code, which addresses "incongruent coverage" - situations where creditors receive security or satisfaction they weren't entitled to receive, or not in that form or timing. The practical stakes are substantial: within the last month before insolvency filing, objective incongruence alone suffices for avoidance actions, with no requirement to prove the creditor's knowledge of the debto

Sustainability criteria have evolved from voluntary commitments to critical factors in corporate financing. Companies seeking refinancing during crisis must now not only address operational and financial challenges but also credibly demonstrate ESG transformation, navigating potential deal-breakers, restructuring concept requirements, and greenwashing liability risks.

As sustainability criteria evolve from voluntary commitments into hard-edged determinants of corporate finance, companies seeking refinancing in distress situations must now present credible...

When a contractor faces financial distress, companies often make direct payments to the contractor's upstream suppliers to maintain supply chain continuity.

The German claw-back regime for shareholder loans also applies if the shareholder loan agreement is governed by the laws of another EU member state...

Shareholding as a Service (SaaS) restores decisiveness in stuck workout situations. Temporary, professionally mandated ownership stabilises the shareholder layer...

Ich durfte mich als Teil eines starken CRO-Office-Teams, das einen Automobilzulieferer über zwei Jahre begleitet hat, um alle Elemente des Sanierungskonzeptes kümmern, die im weitesten Sinne mit M&A, also Unternehmens- bzw. Werks(teil)verkäufen zu tun hatten.

Several myths and stereotypes surround headcount restructuring projects in Europe.

Wirklich beliebt ist die oder der CRO bei Unternehmen nur selten.