Einleitung

On December 13, 2011, the Act for the Further Facilitation of the Restructuring of Companies (ESUG), whose material provisions will come into force on March 1, 2012, was announced in the Federal Gazette. The ESUG bundles several reformatory efforts with regard to German insolvency law and will likely have significant effects on the daily practice. Generally, the restructuring of companies in financial crisis will be made easier. The creditors’ influence on the proceedings, including the selection of the person of the insolvency administrator, is increased.

Im deutschen Vertragsrecht gilt das Prinzip der Vertragstreue (pacta sunt servanda), welches die Verpflichtung zur Erfüllung von Verträgen zum Gegenstand hat. Hiervon werden im Falle der Insolvenz einer Vertragspartei Ausnahmen gemacht. Mit Eröffnung des Insolvenzverfahrens wird das Prinzip der Vertragstreue modifiziert. 

The EU Decision

The EU Commission has held on January 26, 2011 that the so called restructuring privilege offered by German corporate tax law, which allows corporations in a distressed financial situation to continue to set off tax loss carry forwards against future profits even if their shareholder structure has substantially changed, is incompatible with EU State Aid provisions.

The recipients, which have applied the restructuring privilege, are now threatened with the reclaim of the tax benefits.

Within German contract law, the principle of being bound by a contract (pacta sunt servanda), i.e. the obligation to fulfill agreements, applies. In case of the insolvency of one of the contractual parties, however, exceptions are made. Upon the opening of the insolvency proceedings, the principle of being bound by a contract is modified. 

Crises of credit and financial institutions are currently the order of the day.

mayer brown 1 März | March 2018 Deutsches Insolvenzrecht Die Aufrechnung in der Insolvenz German Insolvency Law The right to set-off during insolvency proceedings 2 Deutsches Insolvenzrecht | German Insolvency Law Nach dem deutschen Insolvenzrecht besteht das Recht zur Aufrechnung des Insolvenzgläubigers auch in der Insolvenz des Schuldners fort, wenn er zur Zeit der Eröffnung des Insolvenzverfahrens kraft Gesetzes oder auf Grund einer Vereinbarung zur Aufrechnung berechtigt war. Zum Zeitpunkt der Insolvenzeröffnung bestehende Aufrechnungslagen sind somit „insolvenzfest“.

The impact of insolvency proceedings on arbitral proceedings is becoming an increasingly important consideration for parties. Two scenarios can be generally envisioned: (i) a company files for insolvency while it is engaged in arbitral proceedings; or (ii) arbitral proceedings are initiated after insolvency proceedings have commenced. In both scenarios, the parties need to assess how the insolvency proceeding affects the arbitral proceedings. This article assesses the impact of insolvency proceedings initiated in Germany on foreign arbitral proceedings.

Um die Insolvenzmasse zu erhöhen, ermöglicht das Insolvenzanfechtungsrecht dem Insolvenzverwalter, unter bestimmten Voraussetzungen auf Werte zuzugreifen, derer sich der Schuldner vor der Stellung des Antrags auf Eröffnung des Insolvenzverfahrens zu Lasten einzelner oder aller Gläubiger entäußert hat. The insolvency challenge rights give the insolvency administrator, under certain prerequisites, access to assets which the debtor disposed of to the detriment of the creditors prior to the filing for insolvency, thus increasing the insolvency estate.

German Insolvency Law