S & P LEGAL SERVICES

Company crisis and insolvency

Our legal and interdisciplinary consulting approach offers analysis and structuring components to avoid undesirable developments long before companies and entrepreneurs get into any kind of financial and economic crises. To name but a few of those services: 

• Advice on financing agreements, both with regard to contract law and the individual situation   
• Individual assistance for executives and members of supervisory bodies in the scope of concluding risk-prone contracts
• Structuring and implementation of “asset protection“ measures
• Advising creditors in the scope of procuring, enforcing and realising securities from debtors  

Once a crisis is there, conflicting creditor and debtor interests come to light even more clearly. Financial restructuring and restructuring measures as well as the structuring and implementation of supporting measures by the shareholders, key lenders and new investors pose challenging legal and tax-related questions. Our expertise especially includes the following:

• Consulting and representation of organisations, companies and company bodies in the scope of reorganisation and structural measures 
• In and out of court advice and assistance for those taking action during the restructuring process 
• Legal and tax structuring of financial support measures taken by creditors and shareholders 
• Integration of interim managers and assumption of supervisory and advisory board functions

In case of insolvency, the debtor usually focuses on making an effort to successfully avoid financial claims of the creditor. The creditors, on the other hand, strive to enforce their claims for payment and realise the securities they obtained. Preparing reorganisation and insolvency plans and implementing them in the course of negotiations with the creditors provide the opportunity to preserve the core business and continue operations. To meet this goal, the acquisition/disposal of a company in distress is often an option (distressed M&A). Substantial components of our integrated consulting range in this respect are:

• Procedural enforcement of and defence against claims in insolvency proceedings 
• In and out of court advice on contesting the transactions of the insolvent entity prior to commencement of insolvency proceedings, substitute equity, liability of legal persons for wrongful acts or negligence on the part of their officers, enforcement of liabilities of the insolvency estate and filing of claims to the insolvency schedule 
• Assistance and advice on preparing and implementing insolvency plan proceedings and debtor and creditor agreements 
• Representation of creditors in the creditor committee 
• Legal and tax structuring of any type of transferring reorganisation (asset or share deal) in connection with the disposal of distressed companies or parts thereof including labour law related issues and risk assessment, preparation and implementation of concepts for take-over

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