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Self-directed restructuring

The self-administration procedure (regulated by § 270a InsO) offers companies the opportunity to utilise the instruments of the Insolvency Code (InsO) to reposition themselves financially and in terms of performance.

Here are some of the considerable advantages that are possible, just like in regular insolvency proceedings:

  • Government insolvency payments to employees (wage savings for the insolvency period),
  • Immediate release from leasing agreements or other financial contracts,
  • Property lease cancellation with three months’ notice,
  • Employee termination with maximum three months’ notice
  • Employee compensation plan restricted to 2.5 months gross

A process such as this can be successfully completed in a time frame of six to nine months. Unlike regular insolvency proceedings, an insolvency administrator is not appointed. Instead, only a (provisional) trustee is appointed who monitors the orderly progress of the process for creditors.

The company management remains fully competent. Depending on the size of the process, a committee of creditors can be appointed to monitor the restructuring progress for the creditors. In terms of external impact, self-administration is perceived much more as a restructuring method instead of insolvency.


Case Study

Telba AG

For a procedure like this to succeed, professional preparation and implementation are required. Insolvency (in self-administration) is possible, though only once. Without experience in dealing with all parties involved in this process, a successful restructuring cannot be achieved. Creating a restructuring concept by itself is not enough for the process to succeed. Instead, knowing the specifics of the process and how to approach the involved parties is what matters for the restructuring's success. We have gained this knowledge from multiple successful restructurings of all company sizes. When creating insolvency plans, we have expertise gained from more than 30 insolvency plan procedures. Every one of the insolvency plans presented by us has been accepted by creditors.

We accompany you with our team while preparing the process and also take over company responsibility in the business being restructured. We put together an individual team with all the necessary competence for every company. Our range of services includes:

  • Preparing the insolvency application, including organising a provisional committee of creditors and the appointment of a trustee together with the insolvency court.
  • Assuming the role of authorised representative for restructuring or management's role for creating trust with key stakeholders.
  • Planning or adjusting a restructuring concept in the instance of self-administration, including implementation.
  • Operational assistance in self-administration process when implementing restructuring measures, including those affecting staffing.
  • Liaising with insolvency court, committee of creditors and trustee.
  • Creating and implementing an insolvency plan.