As part of our risk provisioning for corporate and transaction structures, we provide advice on identifying the liability risks created by the measures taken during the crisis and work out strategies to avoid them.
If need be, we move the perspective from company and insolvency law forward to the time when the parties concerned will, for the first time, be considering the possibility of a crisis or insolvency occurring later (referred to as a “risk preview”).
Legal acts that appear harmless or even wise in the ordinary course of business may be disadvantageous or contestable even a long time afterwards in the event of insolvency at a later stage. Within the scope of existing structures or imminent transactions, we therefore recommend that an examination is carried out to determine the extent to which any crisis or insolvency of one of the parties concerned at a later stage might give rise to claims of an insolvency administrator or other entitled parties later.
Above all, company-law structures and capital measures harbour a significant risk of the avoidance, rescission and invalidation of claims in the event of insolvency later. Individual risks can entail joint liability or the “risk of infection” for entire corporate groups.
We also advise and represent clients against whom claims are filed as parties disputing an avoidance. In this context, we draw on our expertise and experience from our own activities as insolvency administrators and represent our clients both in court and out of court.
We also assist clients on the issue of what is to be done when one’s own company is in a crisis in order to meet compliance requirements. The following are gaining importance in particular: the preparation of company agreements (insolvency of a shareholder etc.) and the corporate structure (group financing, profit transfer agreements etc.), how the business partner can be supported without putting one’s own asset interests in the company at risk (evading avoidance risks in instalment contracts etc.) or how a supplier in a crisis can be replaced in a legally safe manner.
Avoidance based on intent in current business relations – German only (pdf)
Dealing correctly with debtors in crisis – German only (pdf)
Collateralisation of subordinate loans – German only (pdf)
Risks entailed in granting security – German only (pdf)
German Federal High Court of Justice on subordination statements – German only (pdf)
Reform of insolvency avoidance law in 2017 – German only (pdf)
German Federal High Court of Justice on the avoidance of gifts pursuant to Section 134 of the German Insolvency Code – German only (pdf)