Insolvency administration

If a company is financial distress, there is often no way around insolvency proceedings. A central component of insolvency proceedings is insolvency administration. German insolvency law sets out clear rules that insolvency administrators must comply with. The core objective is the orderly restructuring or liquidation of the company. In doing so, the interests of creditors must be taken into account.

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As a hybrid of a law firm and management consultancy, Anchor has 15 locations throughout Germany and the comprehensive expertise to master complex crisis situations.

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What does an insolvency administrator do?

The main task of the insolvency administrator is to manage and monitor the insolvency proceedings. The focus is on the safeguarding and optimal realization of the insolvency estate. During the insolvency proceedings, the insolvency administrator acts as a neutral authority appointed by the insolvency court. The insolvency administrator has no interest of its own in the economic realization of the insolvency estate, but acts on behalf of the community of creditors.

If it turns out that the company business operation is viable, the insolvency administrator also assumes responsibility for continuing the business. This includes preserving jobs and determining the future direction of the company. In some cases, individual business areas or the entire company may be sold. The essential duties of the insolvency administrator include reporting and documentation to the creditors and the insolvency court.

What does Anchor do as an insolvency administrator?

Insolvency administration for companies of all sizes and in all industries has always been one of our core competencies. Our team also benefits from the special focus of our law firm: we see ourselves as a hybrid law firm with highly specialized expertise in both business and legal matters. With over 190 employees spread across 15 locations from Berlin to Mannheim to Munich, we are one of the largest restructuring law firms in Germany. We employ experienced lawyers, commercial lawyers, and business economists who are able to analyze and resolve complex crisis situations.

Regional and international support

Our team works across locations and is not limited to specific regions within Germany. We are there for companies in northern Germany as well as in the west, east, and south. We have in-depth knowledge of all regional, national, and international markets. For clients with cross-border activities, we draw on our international network to master challenges in foreign legal systems.

Frequently asked questions about insolvency administration

What types of insolvency proceedings are there in Germany?
Under current German law, there are various types of insolvency proceedings: self-administered or debtor in possession insolvency, insolvency under protective shield proceedings, and regular insolvency administrations under the supervision of an insolvency administrator. We offer comprehensive expertise in all three types of proceedings. Self-administered restructuring has the advantage that the company can determine its own future direction and restructure under the supervision of a court appointed custodian. Protective shield proceedings are particularly suitable for companies that are in economic crisis but are not yet insolvent. In protective shield proceedings, the company must draw up an insolvency plan and then implement it. In the public perception, protective shield proceedings are often not perceived as classic insolvency but rather as restructuring proceedings, which can have a positive effect on the future image of the company concerned. In regular insolvency proceedings, the insolvency administrator controls the proceedings. Our experts examine on a case-by-case basis which insolvency proceedings are best suited for a successful restructuring.
How long does insolvency administration take?
The duration of insolvency administration depends not only on the type of proceedings, but also on the size of the company and the overall situation. Experience shows that complex cases take longer, while simple cases with a manageable creditor structure can be concluded more quickly. Two factors that contribute to a reduction in time are particularly important to us: the swift implementation of restructuring measures and a rapid arrangement with all creditors, if necessary through an insolvency plan. In addition, as insolvency administrators, we are bound by legal deadlines and regulations, which can also determine the time frame of the insolvency proceedings.
Our references
In recent years, we have successfully completed numerous cases as insolvency administrators. Our references cover companies and groups of companies from almost all industries. With each assignment as an insolvency administrator, our task force gains additional expertise that will be useful for the next assignment.