Beware of financial risks regarding company pension schemes: Widow’s pensions survive even if excluded by late marriage clauses In a recent decision – court file no: 3 AZR 137/13 –, the German Federal Labour Court (Bundesarbeitsgericht) – Germany’s highest court for employment law cases – invalidated certain forms of the long standing so-called “late marriage clause” (Späteheklausel) regarding survivor’s benefits under company pension schemes. For employers with pension schemes including the relevant clauses, the decision has direct financial and accounting consequences.

At its core, PROKON was planning, building and operating on-shore wind parks in Germany. But the scope of its operations had grown far beyond this nucleus, fuelled by a steady influx of jouissance capital (Genussrechtskapital) which could not be invested in wind parks as quickly as it could be canvassed. Most notable amongst the non- core assets acquired with this capital were a German company operating a canola oil mill and loans to a German producer of standard pallets used in transportation and to a Romanian forest holding company.

Three years of “ESUG”: Wind of change or same procedure under new label? The German law to facilitate the restructuring of enterprises (“ESUG”) entered into force three years ago. Now several studies are at hand assessing the impact of this insolvency law reform in Germany.

In the recent decision of Lutz [2015] C-557/13, the European Court of Justice (ECJ) upheld domestic defences against a clawback claim. The case relates to a clawback action brought by an insolvency administrator in Germany against a defendant based in Austria. Thanks to the decision in this case, the prerequisites for a defence under article 13 of the European Insolvency Regulation (EIR) against actions such as these, which are commonplace in Germany, have now become more clear. Read more

Following up on our report in the Q1 2015 issue of Global Insight on “Intellectual Property Rights in German Insolvency Law”, which discussed the outdated provisions governing IP rights under German insolvency law, here are the latest developments to enhance possibilities and ease procedures for investors and startup companies. Read more

In recent months, the US has seen a staggering increase in the number of retailers, both large and small, filing for bankruptcy. Among others, Dots, Alco Stores, Radio Shack, Deb Shops, Wet Seal, and Delia’s have each filed for bankruptcy protection in the past six months alone. There can be little doubt that these retailers and countless others, face tremendous challenges given consumers’ shift in preference to online shopping with expedited shipping over visiting a bricks-and-mortar store.

The German Supreme Court has filed a question with ECJ (European Court of Justice) for a preliminary ruling about issues of jurisdiction of Members States and limits of the scope of EIR. A German liquidator had filed an avoidance action toward a third party located in Switzerland with a German Court. Do German courts have jurisdiction regarding such an action?

Jens Lieser & Dr. Alexander Jüchser In July 2012 the Nürburgring GmbH, 90% owned by the state of Rhineland-Palatine and 10% owned by the district of Bad Neuenahr-Ahrweiler, and two of its subsidiaries, filed for insolvency administration in accordance to sec 270 et. seqq German Insolvency Code (InsO). The Chief Restructuring Officer (CRO) is Prof. Dr. Dr. Thomas B. Schmidt (Trier, Germany). The court of Bad Neuenahr-Ahrweiler appointed Jens Lieser (Koblenz, Germany) first as preliminary insolvency administrator, later as permanent insolvency administrator.

Frankfurt a.M. on 15 August 2014. Hatfield Philips and the insolvency administrator Ottmar Herrmann have assigned Jones Lang LaSalle (JLL) with the sale of an en bloc package consisting of 128 real estate properties from the "Treveria Silo E Portfolio". Sales are scheduled to start at the beginning of September. The portfolio offered under the project name Sunrise is placed on the market as an en bloc package. It consists mainly of inner-city commercial properties in 1A and 1B locations all over Germany.

THE INTERNATIONAL SCENE: Qimonda: Patent Protections Upheld in Cross-Border Case (citation: Dylan G. Trache and John T. Farnum, Qimonda: Patent Protections Upheld in Cross-Border Case, XXXIII ABI Journal 3, 54-55, 91, March 2014) - Dylan G. Trache and John T. Farnum