As a lawfirm, 3QLaw also advises in connection with the purchase or sale of a company in crisis and insolvency (over-indebtedness or insolvency). These include, on the one hand, the sale of the company in economically difficult times, when the entrepreneur is no longer able or willing to manage the necessary reorganization, or the sale of an already insolvent company by the insolvency administrator. Other restructuring solutions, in particular the establishment of rescue companies and the sale of the company in insolvency plan proceedings, are also possible alternatives.
In most cases, insolvent companies are not broken up, but are either restructured themselves within the framework of insolvency plan proceedings (although this has been rather rare to date) or sold by way of "transferring restructuring".
As an entrepreneur and/or managing director, however, you should bear in mind that the purchase or sale of a German company during a crisis is a "battle against time". Because in times of crisis and at the latest in insolvency, the risk increases significantly that not only many customers and suppliers will turn away from the company, but also that particularly qualified employees will leave. As the crisis progresses, the hands of the managing directors are increasingly tied, and at the latest with the decision to open insolvency proceedings, the management's power of disposal over the company is taken away under German law.
Depending on the phase in which the company is acquired or sold, different "rules of the game" apply. There are special German legal conditions that generally need to be considered and regulated for German M&A in crisis and insolvency. This concerns above all - but not only - the issues of the effectiveness of dispositions, the avoidance in insolvency, the refusal of performance by the insolvency administrator and issues relating to the workforce. 3QLaw also supports you in these cases.