Insolvency Law and Restructuring
SKW Schwarz has a team of specialists, including three insolvency administrators, which give advice on how to avoid or manage insolvencies.
“Insolvency” is a term which many companies try to avoid at all costs. However, insolvency law is increasingly becoming an instrument to restructure companies and keep them in business. Insolvency lawyers have numerous tools at their disposal to help suffering companies restructure and avoid insolvency. And even if insolvency is unavoidable there are ways to limit the damage and keep companies in business if a restructuring makes sense.
Restructuring advice
“Crisis is a productive state – you only have to take away the flavour of catastrophe.” We like to quote this aphorism by Swiss writer Max Frisch when companies or entrepreneurs see a crisis approaching or are already in it. We help them with their strategic reorientation, show them restructuring opportunities and assess alternative courses of action. The goal is to avoid a serious liquidity crisis by acting in time.
Most restructuring issues can be resolved only if tax, labour, finance and capital-market specialists cooperate closely. SKW Schwarz’s advantage is that it can offer its clients cross-sector restructuring concepts.
Creditor representation
SKW Schwarz advises creditors whose business partners are in a crisis or have entered into insolvency. In this situation it is particularly important to align legal risks and entrepreneurial decisions. Contractual provisions are drafted in such a way that they are clear and as little affected by insolvency as possible. A crisis requires quick action in order to minimise business risks. We help our clients to assert their rights both before and during insolvency proceedings of their contract partners.
Purchase of insolvent companies or company departments
SKW Schwarz gives comprehensive advice on the purchase of insolvent companies or parts of insolvent companies from the bankruptcy estate. A purchase from the bankruptcy estate offers considerable opportunities. For example, purchases from the bankruptcy estate of a competitor may help a company to obtain newly freed market shares. We help our clients to answer the typical questions in this context: How can we deal best with insolvency administrators? What should the purchase agreements look like? And how can we purchase only the assets and not the liabilities of an insolvent company?
The entrepreneurial approach of our firm is particularly important in the area of insolvency and restructuring. Our clients desire not only a reliable legal analysis, but also the protection of their business interests. Instead of increasing and spreading legal concerns we support business ideas and take care of the legal aspects.
Examples
Shortly before an insolvency application had to be filed the managing director and shareholder of a medium-sized company asked for legal support during the insolvency proceedings. The liabilities already incurred under civil and criminal law were minimised in negotiations and a reliable basis for the future of the managing director and the company was created.
A fully liable single entrepreneur asked for advice in an early stage of a crisis of his firm. Thanks to a prudent use of legal options which were available at that point in time we were able to ensure his livelihood. The core parts of the company were successfully restructured in insolvency proceedings.
A wholesale retailer wanted to reduce his losses from the non-payment of receivables. We reviewed the General Terms and Conditions and established clear procedures for the employees. As a result, receivables losses were reduced considerably.
An entrepreneur got wind of the insolvency of a direct competitor. Together with the preliminary administrator we managed the continuation and later the transfer of the company’s business. By purchasing the company from the bankruptcy estate our client was able to secure the orders and the attractive customer base for his company.