International Corporate Rescue
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Vol 17 (2020) - Issue 1
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The Establishment of Preferential Claims in Preliminary Self-Administration Proceedings under German Insolvency Law: A Happy Ending?
Dr. Artur M. Swierczok, Senior Associate, and Joseph Saed, Trainee Lawyer, CMS Germany, Frankfurt am Main, GermanySynopsis
After the filing of a petition for the opening of insolvency proceedings over the assets of a debtor it is crucial that the debtor can secure the confidence and trust of his existing business partners. This is in particular the case if it is intended to restructure the business of the debtor. The decision of the German Federal Court of Justice discussed in this article establishes a powerful tool for the debtor to achieve this aim.
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