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Creditors' protection proceedings

 

Self-directed restructuring

The creditors' protection proceedings (‘Schutzschirmverfahren’, § 270b InsO) does not differ fundamentally from the self-administration procedure, not even in terms of opportunities or risks. The main difference is that this process is only possible when the company is facing looming liquidity issues and is not yet experiencing a complete lack of liquidity or over-indebtedness.

Additionally, the monitoring trustee can be chosen by the company and is not stipulated by the committee of creditors or insolvency court. This process can thus be used to involve a known trustee in the proceedings.