Self-Administration

The German Insolvency Code offers companies the possibility of reorganising with insolvency proceedings “in self-administration” as defined as being “debtor-in-possession management” in §§ 270 et seqq. of the Insolvency Code (InsO).

A special form of personal management is the so-called “protective shield proceedings” as defined in § 270d InsO. Restructuring under the framework of the protective shield proceedings under § 270d InsO is only possible if the company is (still) solvent and fundamentally has “the ability to reorganize”. These prerequisites are, as a rule, to be evidenced by special certification (the so-called protective shield certification).

Self-administrationmeans the company’s management is under the supervision of a trustee appointed by the Insolvency Court. Normally the company’s management is supported by an external reorganisation advisor for the duration of the proceedings. In cases of a “protective shield proceedings” an insolvency plan for reorganising the company must be developed during a time period of maximum three months as of the application for self-administration. The preparation and the implementation of insolvency proceedings in self-administration places particular demands on the quality of the financial accounting.

Use the support of our experienced restructuring experts. They can support you in optimising your existing financial accounting, in working out liquidity planning under assumptions based in insolvency law, in preparing the insolvency application and in preparing a protective shield certification as provided for under § 270d (1) sentence 1 InsO.

Our experts guide management as requested for the entire duration of the insolvency proceedings, resulting in the management mitigating their liability in the end. Through our extensive cooperation network we have contact with many professionals who could serve as appropriate trustees, whom we could suggest to the Insolvency Court.