Insolvenzrechtliche Compliance | Fieldfisher
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  • Insolvency - Compliance

Insolvency Compliance

Insolvency entails significantly increased personal risks for the executive bodies of a company. At the latest then, it is important for the executive bodies to be able to prove that they (i) had implemented systems to identify the crisis in good time, (ii) reacted correctly to the signs of the crisis, (iii) fulfilled their obligations to file for insolvency in good time and (iv) recognised and fulfilled all other legal and tax obligations.

Do not stress

In the event of a crisis without insolvency, the executive bodies must have a sufficient overview of the current and future economic situation of the company and make comprehensible forecast decisions, especially in order to avoid unnecessary insolvency. This also includes the analysis of existing financing and corresponding covenants and other contracts.

The need for advice for the executive bodies of companies in crisis and in view of a possible crisis is enormous and helps to avoid liability risks (which may be existential for the executive bodies).

The aim of the advice must be to ensure, together with the executive bodies, that they have the necessary information before and during the crisis, make comprehensible assessments, fulfil legal and contractual obligations and document this overall in such a way as to exclude personal liability.

Once security and trust have been created with the help of these measures and this knowledge, the executive bodies can navigate the company through the crisis with a cool head.

Procedure and Range of Services

Procedure

The institutions must implement an early warning system to prevent crises. This includes a constant self-assessment of the current and future economic situation, including contractual provisions (in particular in financing agreements).

This constant self-examination becomes all the more intensive and close-meshed the more the signs of crisis, such as in particular the reduction in equity and (forecast) liquidity, accumulate.

Range of Services

We advise you on the introduction of the early warning system to avoid crises as well as in a possible crisis. In particular as follows:

  • Analysis of the company's susceptibility to crisis, including examination of financing agreements and existing information on the economic situation
  • Examination or support in the development of an early warning system and corresponding processes
  • Advice on the legal obligations in the event of signs of crisis
  • Support in communication, especially with supervisory bodies, owners, banks and other creditors
  • Coordination with the financial advisors and, if necessary, the CRO with regard to the forecast for the continuation of the business, the economic situation and the rights and obligations of the executive bodies in the crisis
  • Preparation of and advice on the preparation of plans to overcome the crisis
  • Advice and representation before supervisory authorities and in court proceedings

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