FINKENHOF advises all stakeholders involved in distressed situations across the entire spectrum of insolvency law.
Advising Managing Partners and Corporate Bodies
FINKENHOF advises shareholders and corporate bodies (managing directors, executive board members and supervisory board members) with respect to their specific rights and obligations in challenging business situations. A key aspect is protecting clients against those risks associated with the management of distressed companies, i.e. personal civil and criminal liability. In addition, our firm helps its clients to make the right business decisions as to overcome an economic crisis and preserving values in restructurings.
Self-Administration and Protective Shield Proceedings
The ESUG laws that came into effect on March 1, 2012 provides for several new legal instruments to restructure distressed companies in favor of shareholders, managing directors and creditors.
The partners at FINKENHOF have successfully prepared and conducted numerous self-administration (Eigenverwaltung) and protective shield proceedings (Schutzschirmverfahren). As a result we could preserve the values of assets for both shareholders and creditors. We support our clients in the legal and commercial development of insolvency plans as well as restructuring concepts.
We advise investors on all aspects of distressed M&A transactions. We have acted as legal advisors to investors as well as legal advisors to insolvency administrators. In addition, we regularly carry out the function of an insolvency administrator within self-administration proceedings. We therefore understand the needs of all relevant stakeholders to distressed transactions, in-court and out-of-court. This enables us to structure negotiations very efficiently as to achieving the optimum result for our clients especially in challenging situations.
The commercial negotiations between banks and distressed companies may often be solved through the implementation of a so-called double-sided trusteeship structure (doppelnützige Treuhand), designed to address the interest of the equity holder and the creditors simultaneously. The banks receive additional security for their contributions for the restructuring process. Shareholders avoid insolvency proceedings and maintain a chance for an out-of-court restructuring. We possess of substantial experience in the negotiations, establishment, and implementation of double-sided trusteeship structures and advise all parties with respect to all legal and commercial aspects in this regard.