As consultant and insolvency administrator or trustee we support restructuring projects within the framework of protective shield or self-administration proceedings. We keep our focus on preserving the company as a whole, while at the same time, we also pay particular attention to the interests of creditors and other stakeholders.
We also view ourselves as mediator in insolvency proceedings between the different parties and their conflicting interests. We strongly believe that for each and every case this is the right way to achieve the best possible solution and outcome for our clients.
Self-administration and protective shield proceedings are instruments of German insolvency law that open up the possibility of a largely self-determined, predictable and effective restructuring for companies in crisis situations. Both procedures are intended to create an incentive to tackle one’s own remediation efforts as early as possible. The “stain of insolvency” takes a back seat to the restructuring initiated on its own responsibility and opens up room for manoeuvre for the company.
In self-administration, to put it simply, the company is the insolvency administrator. The management implements the restructuring by itself and shares a lot of the privileges of an insolvency administrator. Finally, the ownership structure can also be altered in self-administration proceedings via an insolvency plan, which is also the instrument through which a financial restructuring
The protective shield proceedings are a special form of self-administration. A company may opt to submit an insolvency plan within a period set by the court. During this phase, interference by creditors with regard to the restructuring project is not possible (hence the term “protective shield”). The court also appoints a provisional trustee – who can be proposed by the company itself – to oversee the process.
BBL has already supported a large number of self-administration and protective shield proceedings – as an advisor to the company to be restructured, as a trustee appointed by the court and also as a representative for creditors or shareholders.
Insolvency administration has always been BBL’s primary focus. We support companies of all sizes, from all sectors, in insolvency proceedings and we always keep in mind the interests of the creditors.
As one of Germany’s leading commercial law firms in the field of insolvency and restructuring, we have a large team of excellently trained specialists and are therefore able to accompany insolvency proceedings of any size and industry. In doing so, we rely on efficient process processing with the help of digitised processes, short distances and technical know-how at the highest level. We are just as familiar with complex structures as we are with simple cases. And yet every procedure is a new challenge for us and at the same time an incentive to give our best at all times.
The preservation of insolvent companies is our top priority. That is why we understand insolvency law as “reorganization law” and make full use of the resulting (legal) possibilities. Each individual case is different, which is why there is no “one size fits all” way for us doing things, but rather we develop bespoke solutions using creativity and a sound judgement. Our insolvency administrators consider themselves mediators between the interests of the various stakeholders (banks, suppliers, customers, etc.).
BBL processes a large number of consumer insolvencies and insolvencies of formerly self-employed parties via the department we set up specially for this purpose. This approach ensures rapid and cost-effective processing to a standard above the norm for such procedures.
With receivership, the secured creditor not only has the option of foreclosure on a property, but also the option of gaining income from a property by collecting rent or from lease payments or has the choice of keeping the property going in the event of a corresponding risk.
We have been constantly active in receivership for many years and manage real estate of all kinds – from condominiums to commercial properties. As part of our receivership activities, we act as service provider for the enforcement courts, the prosecuting creditors and the tenants. The basic prerequisites for being able to accommodate all the many and varied interests of those involved are a high degree of economic understanding, appropriate legal knowledge and, above all, the ability to come up with practical solutions. We are in close contact with creditors and, in coordination with them, we use targeted measures, if possible, to maintain or increase the value of the property. In addition, as part of our role as insolvency administrator, we also take on the management of those properties we are responsible for.
Away from insolvency and receivership proceedings, as part of what is known as “cold receivership”, we work hand in hand with creditors who are in the land register and look after the real estate for them.
The globalisation of the economy is illustrated by an increase in the number of global companies. However, contractual relationships are not subject to national borders and can have a significant impact on companies abroad, especially when it comes to issues of insolvency law. Accordingly, crisis situations can have global consequences because German companies often have subsidiaries abroad or there are foreign companies that have investments in Germany, which can also be affected in the event of a crisis.
In addition, the challenges involved in negotiations with insolvency administrators from other jurisdictions are far greater than in Germany. Even more so is the planning and structuring of a so-called cross-border insolvency, which is a risky undertaking for managing directors, especially if they have little or no experience and knowledge.
We have been active in cross-border insolvency cases for many years and have also supported the large insolvencies of global companies. In addition to this expertise, we have a widespread global network of local experts who have extensive legal and/or tax know-how in the respective jurisdiction of a country.