Disputes & business risks
Financial distress requires prompt decisions based on reliable information. We advise businesses, owners and creditors on commercial and corporate issues in restructuring and coordinate specialist insolvency advice.
Scope of our advice
Workstreams include liquidity, stakeholder negotiations, security, distressed disposals and the treatment of contracts and claims. German insolvency filing and payment duties must be assessed under the applicable domestic rules.
What needs attention
A proposed rescue does not suspend statutory duties. Directors should not interpret an EU reform or a lender’s willingness to negotiate as permission to delay a required filing.
Stabilisation, restructuring choices and creditor interests
A reliable current financial picture is essential in distress. We work with financial and insolvency advisers to distinguish short-term cash pressure from circumstances requiring immediate statutory action. Contractual standstills, refinancing discussions and shareholder support need to be assessed for certainty and timing. The legal review also considers payments, guarantees, asset disposals and conflicts between the company, owners and management. An attractive rescue proposal is not a substitute for evaluating present duties.
How the legal work is organised
The restructuring plan should identify the funding required, stakeholder consents, operational changes and legal route. Out-of-court arrangements, formal restructuring tools and insolvency procedures have different conditions and effects. Creditors need a separate assessment of claims, security, retention of title and possible avoidance exposure. Distressed acquisitions require attention to continuity, liabilities and the authority of the seller or administrator. We help coordinate transaction and contract workstreams while ensuring that specialist insolvency advice addresses the applicable filing and payment rules promptly.
Four practical examples
Illustrative scenarios explaining typical legal issues; these are not statements about specific client mandates.
Liquidity shortage
A business cannot meet upcoming payments. We support urgent legal assessment alongside current cash-flow information and insolvency specialists.
Practical approach. The assessment should be updated as receipts, payments and funding assumptions change. Assign responsibility for reliable daily information where needed, and avoid basing decisions on an outdated annual balance sheet alone.
Customer insolvency
A major customer enters proceedings. We review claims, retention of title, security and contractual options.
Practical approach. Check whether goods can be identified and whether title or other security remains effective. Filing a claim and pursuing proprietary or secured rights may require different steps and supporting documents.
Distressed sale
A buyer seeks assets from a struggling company. We assess transaction structure, liabilities, avoidance risks and operational continuity.
Practical approach. The buyer should distinguish the purchase price from the cash required to restart or maintain operations. Key permits, staff, customers and IT access can determine whether the acquired assets form a viable business.
Lender negotiations
Creditors consider a standstill. We document the arrangement and identify duties and rights that cannot simply be postponed by agreement.
Practical approach. A standstill should state who is bound, what payments are permitted and what ends the arrangement. It cannot be assumed to bind other creditors or remove statutory obligations of the company and its directors.
Preparing the first discussion
Prepare current liquidity forecasts, overdue liabilities, financing terms, security, major contracts and the proposed rescue measures. Identify which funding is committed and which remains only an expectation. For creditors, supply invoices, delivery records and security documentation. A dated decision and action log helps management demonstrate what information was available and how urgent issues were addressed.
Related expertise
Commercial litigation · Arbitration & mediation · Employment in transactions
Discuss your business matter
Tell us which parties and countries are involved, what you want to achieve and whether a deadline is approaching. We will clarify the scope, the appropriate legal team and the fee arrangements before work begins.
Reference: German legislation in translation. English translations of German legislation may lag behind the authoritative German text. Application depends on the facts and the relevant current law.