FOURSOURCE Group GmbH: Sustainable restructuring based on StaRUG

In March 2023, the Amtsgericht [local court of] Berlin-Charlottenburg, appointed BBL Partner, Dr Florian Linkert, as the restructuring officer for FOURSOURCE Group GmbH. Since its formation in 2016, FOURSOURCE Group GmbH has run a B2B sourcing platform with close to 40,000 registered users, which it uses to connect market participants in the textiles value-creation chain. One of the main reasons for the company’s crisis was the technical development of the online platform, which proved to be much more wide-ranging than originally thought. Another factor was the shortfall in financial funding because it became increasingly more difficult to attract it due to the deviations from the plan.

The reorganisation plan based on StaRUG (German Act on the Stabilisation and Restructuring Framework for Businesses), which was accepted and approved in the intervening period, meant that the impending insolvency could be avoided and the company restructured ready for the long-term. The main elements of the plan included a debt-to-equity swap, debt relief, and the acquisition of an investor. Dr Jörg Grau and Dr Ulrich Pohlmann from the law firm Johlke Rechtsanwälte served as the company’s advisers.