Insolvency and Restructuring: Successful realignment with our aid of our experts

We guide businesses through the crisis during restructuring and insolvency.

Companies operating in globally active market environment are continuously exposed to challenges. This means they can experience a crisis situation for a variety of reasons. Frequent triggers include: strategic direction, economic, adverse economic developments, deficient cost controls, or even a lack of innovation.

The BBL Team provides guidance and support to company restructurings & insolvencies as part of protection scheme or self-administration proceedings, either as a consultant, an insolvency administrator, or as a custodian (in insolvency cases). Our activities in this area consistently focus on the goal of retaining the economic sustainability of the business as a whole.

Our expertise in the area of business restructuring and insolvency

Restructuring consulting
It is critical to have comprehensive restructuring consulting in phases where crisis are encountered in relation strategy, production, or sales. Our experts analyse the initial warning signals, and develop preventative measures aimed at stabilising the business.
- Identification of vulnerable points
- Development of plans for restructuring businesses
- Process and cost optimisation
Insolvency consulting
In the event that the crisis persists and a cashflow crisis ensues, special insolvency consulting is then needed. At this point, possible insolvency procedures are discussed, and the best course of action selected to avoid illiquidity or to implement the insolvency in an orderly manner.
- Examining insolvency options
- Consulting on regular insolvency proceedings, self-administration or protection scheme proceedings (Schutzschirmverfahren)
- Support with insolvency applications
Restructuring strategies
When a company is experiencing a cashflow crisis, and particularly in the factual insolvency stage, it is essential to have tailor-made reorganisation strategies. These strategies help to realign the business and arrange it to be more efficient.
- Comprehensive restructuring analyses
- Development of realignment plans
- Implementation of efficiency enhancement measures
Financing and refinancing solutions
In the factual insolvency stage, it is critical that short-term financial constraints are bridged, and stability is secured.
- Negotiations with creditors to defer or reduce payments
- Mediation of fresh capital or loans
- Optimisation of existing financing structure
Self-administration and protection scheme proceedings (Act on the Further Facilitation of the Restructuring of Companies, “ESUG”)
Self-administration and protection scheme proceedings afford crisis-stricken companies the opportunity to undertake self-determined and effective restructuring measures.
- Companies autonomously implement the restructuring procedure
- An insolvency plan facilitates a financial and structural realignment
- A court-appointed custodian supervises the protection scheme proceedings
Insolvency Administration
BBL offers objective, independent insolvency administration services aimed at preserving insolvent companies and to develop tailored solutions.
- Providing guidance to insolvency proceedings of all sizes and in all sectors through a large team of specialists
- Efficient case processing by using digitalised process and top specialist know-how
- Execution of consumer insolvency cases and insolvencies of previously independent persons within a special department for fast and high-quality case processing
Receivership
Receivership enables creditors with collateral security to satisfy their claims from income on real estate, and preserve the property portfolio.
- Administration of real estate of every kind, from owner-occupied properties to commercial real estate
- Close collaboration with enforcing courts, creditors and leasing parties
- Preservation and value accretion of real estate through targeted measures and practical solutions
International insolvency law
International insolvency law is concerned with the global impacts of corporate crises, and the complex challenges of cross-border insolvencies.
- Long-standing experience in cross-border insolvency cases and global corporate insolvencies
- Support from an extensive network of international experts with legal and tax expertise
- Planning and structuring cross-border insolvencies for low-risk case processing

Multiple-award winning teams of experts for corporate turnarounds

For each client mandate, we establish a specific team of experts to conduct a comprehensive corporate consulting process, and for developing and implementing an individualised restructuring plan for the business. This includes the application of tailor-made restructuring measures specifically designed for SMEs and the current challenges of their corporate crisis.
As a mediator between the competing interests of the various parties – be they creditors, employees, or other stakeholders – we seek close collaborations.

BBL for years has been numbered among Germany’s top firms in the reorganisation, restructuring and insolvency sector.
Our experience and ability to implement means we can provide targeted support to companies to help them to achieve a turnaround.

An overview of the phases of a corporate crisis

Corporate crises generally pass through six phases, with precisely targeted counter-measures required in each one.

In the Stakeholder Crisis (Phase 1), the initial conflicts emerge between the various interests groups. The Strategic Crisis (Phase 2) arises from a failure to properly readjust to the market requirements; from this point a Corporate Stabilisation and Restructuring Act (“StaRUG”) procedure can help achieve a realignment. Falling sales figures mark the Product and Sales Crisis (Phase 3), which can be overcome by adjusting the portfolio. The Income Crisis (Phase 4) jeopardises profitability and demands cost reduction measures within the business; from this juncture, self-administration and protection scheme proceedings (ESUG) can facilitate the corporate restructure. The risk during a Cashflow Crisis (Phase 5) is one of illiquidity, which makes it necessary to have a strict cashflow plan. The final phase of any corporate crisis is Insolvency (Phase 6), when there must be a careful examination of all restructuring and continuity options underpinned by insolvency proceedings.

Phase 1
Phase 2
Phase 3
Phase 4
Phase 5
Phase 6

Phase 1 - Stakeholder Crisis

Stakeholder Crisis (Phase 1)

During the Stakeholder Crisis, conflicts arise between the company’s various interest groups, such as the shareholders, customers, suppliers, and employees. Communication deteriorates, trust is lost, and different interests are no longer reconciled with each other. For business owners and decision-makers, the crucial aspect in this phase is proactively regaining trust through transparency and clear communication. Strategic measures for improving stakeholder relations and corporate governance can be conducive here over the long term in securing the stability of the company.

Phase 2 - Strategic Crisis

Strategic Crisis (Phase 2)

A Strategic Crisis arises when a company’s business model no longer fits with market requirements. Technological developments or competitive changes are missed, causing the company to lose its competitiveness. In this phase, business owners and executive managers should conduct a wide-ranging analysis and fundamentally revise their strategy. At this point, it is crucial to develop a sustainable business strategy that takes account of market trends and customer expectations in order to overcome the crisis and generate growth again. Starting from this phase, the StaRUG procedure can help in the development of a restructuring plan and promptly stabilise the business.

Phase 3 - Product and Sales Crisis

Product and Sales Crisis (Phase 3)

This crisis is marked by falling sales figures and problems in meeting market requirements. Products and services no longer correspond to customer demands, or innovation is lacking. During this phase, it is essential to critically review the business offering and to develop new products or markets where relevant. Sales promotion measures, optimising the product range, and target marketing strategies are necessary to regain market shares, and bring the company back onto the road to success.

Phase 4 - Income Crisis

Income Crisis (Phase 4)

The Income Crisis features falling returns because it is no longer possible to balance costs with earnings. Profitability is imperilled, threatening the long-term financial stability of the company. During this phase, companies have to adopt measures aimed at reducing costs and boosting efficiency. This includes the optimisation of processes, streamlining the portfolio, and possibly adjusting personnel numbers. In addition, business owners and finance decision-makers should examine the pricing and margins with the aim of sustainably improving the earnings position. From this phase onwards, the option of an ESUG procedure should be considered in order to steer the restructuring measures actively and self-reliantly within the company.

Phase 5 - Liquidity Crisis

Liquidity Crisis (Phase 5)

A company experiencing a Liquidity Crisis is no longer able to settle its short-term liabilities. There is a risk of the company becoming illiquid, which constitutes an existential threat. At this point, business owners and decision-makers must quickly decide to procure short-term liquidity reserves. This can be achieved through refinancing, selling assets, or negotiating with creditors. A closely interlinked cashflow plan and cashflow optimisation are essential for restoring the company’s liquidity and avoiding an insolvency.

Phase 6 - Insolvency

Insolvency (Phase 6)

Insolvency represents the final stage in the crisis sequence if the company is no longer able to avert its illiquidity. With the assistance of insolvency administrators and consultants, insolvency proceedings (see insolvency proceedings sequence) offer opportunities to restructure and preserve the company. In this phase, decision-makers should examine all options and work closely together with all parties, including creditors and courts, in to minimise the most severe consequences for the company and the employees (see too, delays in filing for insolvency).

Our solutions to ensure companies successfully emerge from a crisis

Each of these six crisis phases demands specific measures to achieve a turnaround, and to return the company to a path of stability. The BBL Team offers an extensive range of instruments for successfully solving the challenges connected with restructuring and insolvency situations.

The targeted application of our services can help companies successfully overcome crises, restore financial stability, and remain competitive in the long term. These specialist solutions are beneficial to business owners, directors, and bank decision-makers, because they minimise the risk while maximising the chances of a successful corporate restructuring.