In the German market, target companies are generally acquired out of insolvency through an asset sale. While this still holds true for the lion’s share of transactions, an increasing number of target companies are being acquired through a share sale.
Im Blickpunkt: Eintritt der Insolvenz nach dem Schiedsspruch
German insolvency proceedings expose company directors to high risks of personal liability. Claims brought on the basis of sec. 92(2), 93(3) German Companies Act (Aktiengesetz, AktG) and sec. 64 German Limited Liability Companies Act can have disastrous financial consequences. Damages can be in the millions. Therefore many company directors purchase directors’ and officers’ liability insurances (D&O insurance) to protect their personal assets.
Bekanntlich ist die Qualifizierung eines Darlehens als Gesellschafterdarlehen in der Insolvenz des Darlehensnehmers besonders nachteilig, da Forderungen aus Gesellschafterdarlehen oder dem gleichgestellte Forderungen gemäß § 39 Abs.1 Nr. 5 InsO nachrangig sind und auch hierfür gestellte Sicherheiten nicht verwertet werden können.
OLG Hamm Entscheidung zu mittelbaren Gesellschafterdarlehen
The first of a series on ‘the perfect restructuring’ in an employment law context, this article examines best practice in the preparation and planning phases of a business restructure.
Member Firm: Kliemt
By: Markus Janko
A recent ruling of the German Federal Civil Court (Bundesgerichtshof (“BGH”)) is a reminder of the risks which shareholders of a German company can face in an insolvency of their German subsidiary.
Hilfe, meine Daten!
Für viele Unternehmen ist die Auslagerung des Daten-Hostings an einen externen Hosting-Anbieter aus Sicherheits- und Kostengründen attraktiv. Bevor sensible oder wertvolle Daten extern verwaltet werden, sollte sich die Unternehmensführung aber zu einem möglichen Konkurs des Hosting-Anbieters Gedanken machen. Ein solcher wirft nämlich verschiedene bisher nur wenig geklärte Rechtsfragen auf.
Was passiert beim Konkurs des Hosting-Anbieters?
German insolvency laws are very strict. The management of an insolvent company is under strict obligations to file for insolvency, and failure to comply with such obligation may result in civil and criminal liability. Other stakeholders, like financing banks or suppliers, who are dealing with a distressed company, require documentation that their contract partner can be restructured, in order to avoid potential liability and claw back risk in case of a future insolvency.
Summary
In May 2017, the German Federal Supreme Court (Bundesgerichtshof), Az. XI ZR 571/15, has given its views for the first time on bridging loans (Überbrückungskredite) and their validity in a restructuring scenario.