A faster process with greater autonomy for the board of directors.
Protective shield proceedings were introduced a few years ago under Section 270b of the German Insolvency Code (InsO). As a judicial reorganisation process, they are another option provided for under modern insolvency law. During this form of proceedings, which are a modification of preliminary insolvency proceedings, the focus is on reorganising the company through debtor-in-possession managementby preparing an insolvency plan.
To compensate for the greater autonomy granted to the debtor company, strict conditions apply. In particular, one of the conditions is that action is taken in good time and that this is well prepared; moreover, this is subject to extensive documentation requirements. Our insolvency law specialists have in-depth expertise and extensive experience.
As with all our insolvency administration activities, we focus our attention on reorganising companies in a way which creates good future prospects. Our highly professional and dedicated approach means that we do everything we can to rescue the company, save jobs and satisfy the interests of creditors to the greatest extent possible.
What you need to know about protective shield proceedings
- Requires an insolvency plan to be drawn up within a short space of time (maximum of three months) under the supervision of a custodian
- The company may suggest a custodian of their choice to the court
- The reorganisation takes place under debtor-in-possession management
- Applications for protective shield proceedings can still be successful even in cases of over-indebtedness and imminent insolvency
- The higher workload involved makes these proceedings most suitable for medium-sized and larger companies