Insolvency and financial distress — whether affecting an individual, a founder-led SME, or a large corporation — demand swift, expert legal advice. LexBerg's bankruptcy and restructuring team advises debtors, creditors, management boards, and insolvency administrators on all aspects of German insolvency law under the Insolvenzordnung, from the early identification of financial difficulties and the options for out-of-court restructuring through to formal insolvency proceedings and asset realisation.
German insolvency law was significantly modernised by the Unternehmensstabilisierungs- und -restrukturierungsgesetz (StaRUG), which came into force in January 2021 and created a pre-insolvency restructuring framework allowing businesses to restructure their debt obligations with majority creditor consent, without triggering formal insolvency. LexBerg advises on StaRUG restructurings alongside all traditional insolvency procedures, including the Schutzschirmverfahren and insolvency plan (Insolvenzplan) mechanisms.
For businesses facing financial difficulties, we advise on the full spectrum of restructuring options — from informal creditor negotiations and covenant waivers through pre-insolvency StaRUG proceedings and Schutzschirmverfahren to formal insolvency filing and plan proceedings.
LexBerg represents secured and unsecured creditors — including banks, bondholders, trade creditors, and former employees — advising on proof of debt, the protection and enforcement of security interests, and creditors' committee participation.
German law imposes strict obligations on directors to file for insolvency promptly once insolvency or over-indebtedness is established. We advise on directors' duties in distressed situations and defend directors against personal liability claims arising from delayed filing.
For cross-border insolvencies involving German companies with operations or assets in multiple jurisdictions, LexBerg works alongside foreign insolvency practitioners and local counsel to coordinate proceedings under the EU Insolvency Regulation (recast) and applicable UNCITRAL Model Law frameworks. We advise on centre of main interests (COMI) analysis, recognition of foreign insolvency proceedings in Germany, and the cross-border enforcement of insolvency moratoriums.
- Corporate insolvency proceedings (Regelinsolvenzverfahren)
- Pre-insolvency restructuring under StaRUG
- Schutzschirmverfahren and self-administration proceedings
- Creditor rights, proof of debt, and security enforcement
- Insolvency administrator appointment and oversight
- Director liability and wrongful trading (Insolvenzverschleppung)
- Cross-border insolvency and COMI disputes
- Personal bankruptcy (Privatinsolvenz) and debt discharge
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