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substanzkonzept: the forecasters

To persist successfully on the market, throughout the years businesses have to undergo some drastic processes of reorganisation now and then. Reorganisation and restructuring measures improve the organisation, the profitability of the company as well as the marketability of an enterprise with lasting effect and help to master corporate crises.

We accompany you with all reorganisation processes. From the development of a reorganisation concept, a wide variety of scopes of design and even the implementation. And if your enterprise is in an acute crisis, we are on your side, ready to act, and smooth the way to restructuring for you.

Creative and effective measures provide for the restoration of existence securing profits, protect the liquidity of your business and uncover possible savings. The earlier you speak with us, the more promising are your prospects. Simply contact us!

Reorganisation

The conversion of reorganisation or restructuring measures is possible in nearly all business segments. These measures often conduce to an improvement of the organisational or economic situation as well as the market conditions of your enterprise. In critical cases a reorganisation or restructuring often helps with the handling of a corporate crisis.  

For the more advanced the corporate crisis is, the more focussed you are on cost reduction measures. Our professional consultation has the aim to realign your enterprise to become more profitable and to assure its continuance. We follow a result oriented plan and in the process keep your operational requirements in view. For more information, please contact us! We draft individually, dependably and in the direction of future.


Advantages 

  • higher profitability / result improvement
  • liquidity protection
  • protection of the enterprise
  • reduction in costs and/or sales increase
  • improved workflow
  • improved communication
  • improved market placement
  • positive synergetic effects
  • crisis management

Risks

  • agitation, conflicts and sorrow through personnel reductions
  • adaption problems through new requirements and structures 

Moratorium & payments by instalments

Payment by instalments arrangements and moratoria are mostly part of an individual debt relief concept to reduce your liabilities and to counteract against a progressive growth of the collective debt burden. Our special field are debt conversion concepts, for instance the reduction of the burden of interest and repayments.

By a moratorium, which means an agreement on extension of payment, in connection with an agreement on payment by instalments, we turn away your short-term impending inability to pay or also insolvency and win valuable time.

Time for a substantial actual analysis and development of an overall strategy. It must be pointed out that during this time, no new debts are incurred by the business. A new indebtedness could be laid out negatively with a later insolvency procedure, because the creditor has not been informed of the current situation.

Contact us – we inform you with pleasure about all possibilities.


Advantages 

  • avoidance of insolvency
  • no image loss
  • customers are generally preserved
  • time profit, to perhaps negotiate with financing institutes (banks, leasing etc.); negotiation of deferrals and interest reductions
  • possible shifting to factoring to generate new liquidity

Risks 

  • payment in advance for current deliveries of goods possible (suitable liquidity need necessary)
  • the plan fails if during the process payment losses commence or other financially loading things (unusual repairs etc.) lead to the fact that the plan cannot be maintained 

Process

  • information to creditor incl. balance query
  • balance confirmation
  • letter with proposal on payment by instalments / moratorium (rate)
  • negotiations with creditors
  • control of the cash flow

Haircut

Often a moratorium or an agreement on payment by instalments are previous to a contemplated haircut, in other words a debt cut. Often only debt relief secures the future of the enterprise. The Haircut is - with directly incorporated settlement sum and amortization - a relevant way to avoid an insolvency, which is generally accepted in this form by creditors.

In reverse this stands for relevant liquidity needs. With suitable securities like valuable machines, real estate or free supplies and demands an interim finance by substanzkapital is possible. Simultaneously initiated reorganisations can secure the future of your business.


Advantages
 

  • prevention of insolvency
  • customers are generally preserved
  • extraordinary yield
  • improvement of the debit side (debt relief)
  • removal of a possible  overextension
  • greater liquidity 


Risks
 

  • payment in advance for current deliveries of goods possible (suitable liquidity need provided)
  • the plan fails if during the process payment losses commence or other financially loading things (unusual repairs etc.) lead to the fact that the plan cannot be maintained 
  • termination of loans possible
  • possible loss of suppliers
  • image loss in the sector (likely)

Process 

  • information to creditors incl. balance query 
  • letter with suggestion on payment by instalments / moratorium (rate)
  • settlement negotiations with creditors in personal meetings and/or written form
  • creation of suitable settlement agreements 

General insolvency (closing)

For us an extensive and professional insolvency consultation is natural. We indicate you the variety of the possibilities which deliver the new insolvency order to your enterprise. Together we discuss whether an ordinary insolvency, a plan or protective umbrella is a sensible option to create the turnaround.

By logical and skilful bailing of the insolvency right, we could already redevelop a huge number of enterprises and keep a large amount of the positions. Nowadays an insolvency can offer good economic perspective, as long as this is strictly seized on time.

We support you during the whole process: starting with the application up to the opening of the insolvency procedure and if necessary also when closing the enterprise. Besides, we campaign with all important people and authorities for you – starting with the insolvency administrator over to the court up to the creditors – to find the best possible regulation for the enterprise.


Advantages
 

  • regulated resolution of the company by an insolvency administrator
  • risk minimization in all areas by professional consultation, commercial and legally (by our lawyers)  
     

Risks 

  • possible liability claims from more creditors / administrators versus management / Shareholders or third-party
  • possible liability claims regarding guarantees or by  failure to file for insolvency in due time versus management / Shareholder or third-party

Process 

  • application for insolvency
  • preparation of data for the insolvency administrator
  • support through the insolvency procedure
  • negotiations concerning outstanding liability claims by the administrator

Transferring renovation

With a transferred restructuring the healthy parts of an enterprise will "transfer" into a new company (rescue company). The business operations are recovered with the "rescuing" and relieved of debt. The creditors of the insolvent enterprise are paid from the purchase price proportionately.

The new company can originate from management buy-out (the management purchases the majority of the capital from the previous owner), management buy-in (an external management, i.e. that of an investor assumes the majority) or mergers and acquisitions (consolidation and take-over).

We will arrange and provide the legal and fiscal reviewed general framework and the chronological schedule of a transferred restructuring for investors and external managers. Ask us for advice and rely on our experience.

Advantages 

  • regulated succession regulation for the company by way of an insolvency administrator / board of creditors in the course of a transferred restructuring
  • risk reduction in all segments by professional advice, commercial and legal (by way of our lawyers)

Risks 

  • possible liability claims regarding guarantees or by  failure to file for insolvency in due time versus management / Shareholder or third-party
  • possible sell-off to third-party-liability by way of tendering procedure

Process 

  • file for insolvency
  • preparation of the documents for the insolvency administrator
  • possible put of an interim manager
  • support during the insolvency proceedings
  • MBO/MBI or M&A process assistance
  • legal review of the contracts for the transferred restructuring

 

Self-administered insolvency plan

The self-administered insolvency plan allows the present management to implement the established insolvency plan and to continue the business dealings even during the insolvency proceedings. Thus the positive continuation and also the reorganisation can be communicated to the creditors much easier. This shows a considerable incentive to file for insolvency early enough, as the entrepreneur does not have to anticipate being superseded from the management.

This restructuring measure can be just the right thing for your enterprise if you have sufficient mass and an existing reason for insolvency. We look forward to advise you and explain all possibilities to you. Send us an appointment request.

 Advantages 

  • the enterprise keeps the present management (information, knowledge and experiences of the present management which the insolvency administrator would have to acquire)
  • incentive for early application for insolvency
  • less expenditure and costs / greater rate (lower reimbursement of the trustee and discontinuation of the valorisation allowance as well as substantial lower legal procedural costs)
  • good reputation of the procedure regarding chapter 11 in the US.
  • creditors/suppliers/customers and employees can easier be given a continuation prospect than by foreign management; hence more motivation and strengthening of confidence
  • own management accelerates the whole restructuring process, lowers the probability of liquidation
  • increase of the willingness of partners to support the  restructuring
  • Control of complex group structures (at several involved insolvent companies coordination of all involved insolvency administrators is hardly possible)
     

Risks  

  • endangering creditors / greater risk for the creditors
  • often creditor and court face self-administration by the manager who brought the enterprise to crisis at least critically
  • self-administration can be arranged at the earliest when opening the insolvency procedure

 Process 

  • application for insolvency
  • preparation of the data for the trustee
  • support while the insolvency proceedings lasts
  • conversion of flanking measures
  • legal check of optional contracts

Insolvency protection proceedings

Your enterprise has high liabilities and excessive restructuring costs? You would still like to preserve the majority of the jobs? Secure customer relations and extensive patents?

With the insolvency protection proceedings after §270 B InsO/ESUG, a person suggested by the entrepreneur takes over the role of the trustee. They continue the business as an enterprise and together they compile a restructuring plan.

With us as insolvency experts you compile a reorganisation concept which has the strategic, functional and financial realignment as its goal. At the same time we establish the contact with experienced interim managers who accompany the restructuring process and support the management with the search for a suitable trustee.

Our experts issue the certificate necessary for the insolvency protection proceedings that the enterprise is able to be restructured. Review your situation with us - we will advise you with pleasure!

Advantages
The enterprise keeps present management (information, knowledge and experiences of the present management which the insolvency administrator only would have to acquire) holds negative insolvency consequences under control

  • Incentive for early application for insolvency
  • less expenditure and costs / greater rate (lower reimbursement of the trustee and discontinuation of the valorisation allowance as well as substantial lower legal procedural costs)
  • good reputation of the procedure to chapter 11 in the US
  • creditors/suppliers/customers and employees can easier be given a continuation prospect than by foreign management; hence more motivation and strengthening of confidence 
  • Own management accelerates the whole renovation process, lowers the  probability of the liquidation
  • Increase of the willingness of the partners to support the renovation
  • Controllability of complex group structures (at several involved insolvent companies coordination of all involved insolvency administrators is hardly possible)

Risks 

  • endangering creditors / greater risk for the creditors
  • often creditor and court face self-administration by the manager who brought the enterprise to crisis at least critically
  • self-administration can be arranged at the earliest when opening of the insolvency procedure

Process 

  • application for opening of the self-administered insolvency proceedings
  • application according to act 21 I, II
  • suggestion of the person being the trustee
  • preparation of the data for the trustee
  • development of an insolvency plan
  • support while the insolvency proceedings lasts
  • optimisation and clarifications with the trustee
  • arrangements with creditors
  • conversion of flanking measures
  • supervision
  • perhaps legal check of contracts etc.

Liquidation & deletion

In some cases a controlled liquidation can be the best solution if an enterprise is in a stage of advanced economic difficulties.

Before your existing limited liability company can be extinguished in the commercial register, numerous legally given formalities must be considered. From the dissolution resolution of the shareholders, to development, liquidation, restrictive year and possible supplementary liquidation the deletion can last more than 1.5 years. 

Liquidation holds risks, however, it can also offer special economic prospects. As an experienced partner we are on your side during the resolution, liquidation and deletion or also alternative covering sell-off of your enterprise. Contact us!