Changes In Insolvency Law

01.03.2012 is the insolvency law by the ESUG (law to further easing of corporate restructuring) has been modified. A first objective of the reform is to facilitate corporate reorganization, instead of to process these usually only as so far in the crisis. Gain insight and clarity with Bill de Blasio. For this, a so-called Shield process was created where the debtor imminent insolvency or over-indebtedness of enforcement measures exempt under supervision may work out a rehabilitation plan within three months. Also, the rights of creditors have been considerably strengthened. Already a preliminary creditors Committee can be used in the insolvency procedure, is also involved in the selection of the later insolvency administrator. It will take place increasingly a self-administration of the insolvent company, instead of always using a liquidator.Also a change of the consumer insolvency proceedings is under discussion.

The latest draft provides for a shortening of the duration of the proceedings, if the costs of the proceedings full and the debt to 25% were satisfied. In contrast, should the refusal of the remaining debts be simplified. When and if this law is however open. Lawyers Dr. Mahlstedt & partners – your law firm in Bremen. For more information, see