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Juli / July 2014
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I) Introduction
Frank Grell is a partner at Latham & Watkins who chairs the firm’s German Restructuring and Insolvency Practice. Grell reflects on some of the major changes brought about by Germany’s 2012 Insolvency Act (Insolvenzordnung), including an increase in the rights of creditors in the proceedings over the assets of German companies, the introduction of “protective shield” proceedings and a reduction in the negative stigma previously associated with restructuring and insolvency.
As of March 1, 2012, a revised German Insolvency Code – amended by the Act for the Further Facilitation of Restructuring of Companies (Gesetz zur weiteren Erleichterung der Sanierung von Unternehmen, the so called ESUG) – went into effect. The changes brought by the ESUG have received great attention not only in Germany, but also abroad. The general view among insolvency practitioners is positive. The reform of the Insolvency Code is mostly considered a success as it has noticeably improved the possibilities to restructure companies.
Für weitere Fragen steht Ihnen
folgender Kollege zur
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Berlin
Dr. Thorsten Seidel, LL.M.
T.: +49 (0)30 2 20 02 81 724
E-Mail: Thorsten.Seidel
@bakermckenzie.com
Beendigung von Ergebnisabführungsverträgen bei
M&A Transaktionen und Restrukturierungen
Ergebnisabführungsverträge („EAV“) sind häufig bei M&A Transaktionen und
im Rahmen von Restrukturierungen zu beenden. Zwei neuere
Gerichtsentscheidungen sollten dabei beachtet werden. Andernfalls laufen
die Parteien Gefahr, dass der EAV nicht ordnungsgemäß beendet wird oder
The Financial Crisis, a difficult market situation and a tense liquidity status have led to remarkable difficulties for mid-sized businesses within the past years. Strategic and financial investors have and continue to utilize these circumstances to acquire interesting distressed companies for comparatively moderate purchase prices.
In order to benefit from these circumstances, investors need to understand how to avoid or minimize the risks of liability related to such acquisitions.
This blog refers to Bettina Goletz’s blog on “Limits on non-compete and non-solicitation clauses under German law”. We have recently been asked whether the employee is entitled to compensation payments under a post-contractual non-compete clause in the situation where the employing company files for insolvency.
Frank Grell is a partner at Latham & Watkins who chairs the firm’s German Restructuring and Insolvency Practice. In this interview, he reflects on several successful applications of the German Insolvency Act (Insolvenzordnung) since the law was passed in 2012 and the continued shift towards a restructuring-based approach to large corporate insolvencies.
In retrospect, 2012 likely will be remembered as another year of manifold challenges in the Eurozone and of slow consolidation rather than one of fundamental reform or renaissance. However, the policy of Mr. Draghi, the chairman of the European Central Bank, appears to have stabilized the markets and the Euro since last summer, Germany's economy is prospering and the stock markets are almost back to pre-2008 levels. Nonetheless, there are fundamental doubts that the measures taken have a lasting effect and will fundamentally reform the economies in the Eurozone.
In its decision published on March 13, 2013 (dated February 21, 2013 – IX ZR 32/12), the German Federal Court of Justice (BGH or Bundesgerichtshof) made it clear that it will uphold its prevailing case law regarding two questions at hand even though the relevant legal provisions relating to equitable subordination have been moved from the corporate law regime to the insolvency law regime with the 2008 Act to Modernize the Law on Private Limited Companies and Combat Abuses (MoMiG or Gesetz zur Modernisierung des GmbH-Rechts und zur Bekämpfung von Mißbräuchen).