In 2012 the protection proceedings regulation (§ 270b InsO) was introduced in Germany with the law to further facilitate the restructuring of companies (ESUG). Protection proceedings are a special form of debtor-in-possession management. Protection proceedings offer companies the opportunity to prevent regular insolvency proceedings if the application is filed early and if the reasons are well founded. A company is then given the opportunity to protect itself against enforcement measures. The liquidity of the company and the chances of successful restructuring are important factors for the arrangement of protection proceedings.

The management may then lead the company itself out of the crisis under the supervision of a solicitor and usually with the support of experienced restructuring experts. Courts can reject proposals for solicitors only if there is a lack of suitability, lack of experience or a dependency. The solicitor supervises, among other things, the management of the business, receives files for claims and establishes an insolvency schedule. The debtor also requires the approval of the solicitor in exceptional transactions, which, for example, exceed considerably the previous business. Therefore, PLUTA's solicitors are always experienced insolvency administrators, who supervise the proceedings or the debtor and ensure legal compliance with the court.

The responsible court appoints an insolvency administrator upon the opening of insolvency proceedings. To safeguard the insolvency assets and to examine the restructuring potential of the company, the courts in Germany, for example, first appoint a preliminary insolvency administrator for the preliminary insolvency administration. If sufficient assets are identified, the insolvency court opens insolvency proceedings usually about three months after submission of the application.

In order to achieve the objectives of a proceedings, the insolvency administrator takes over the management of the business and thus makes decisions about the future of the insolvent company, e.g. the utilisation of the debtor's assets and the distribution of revenue to the creditors. The debt relief or the creation of an insolvency plan to preserve the company and to continue the business, however, opens up a second chance for companies. Usually, we achieve the best outcome for the creditors.

The attitude and experience of the insolvency administrator and his team have an influence on the restructuring opportunities in the event of corporate insolvencies and the creditors' prospects by obtaining as high a rate as possible for their claims. Economic expertise, commercial intuition and the trust of the courts in their work create the best possible conditions for leading a company through and out of insolvency.

In terms of the creditors, we always strive for the best outcome. In many insolvency proceedings, PLUTA administrators achieve above-average insolvency rates. Our lawyers are among the most frequently appointed insolvency administrators for companies in Germany. PLUTA experts also oversee prominent and complex business procedures with and without cross-border implications in Italy and Spain.

The insolvency plan is an important instrument in the reorganisation of the enterprise already in the process of insolvency or the company behind it. Within the framework of the insolvency plan, a settlement is made with the creditors and the rate is determined. The prerequisite is a sound situational analysis and the formulation of appropriate restructuring measures. The insolvency plan also requires a description of the measures which have already been implemented or are still to be carried out during the insolvency proceedings, in order to meet the formulated targets. In particular, an explanation is required if the business is to be used instead of the restructuring of the old legal entity by liquidation, by means of a transferring, restructuring or otherwise.

The insolvency plan also describes how the planned measures affect, on the one hand, the rights of the shareholders and, on the other, the satisfaction of the creditors. The administrator must also specify and explain the changes in the individual parties' legal position when implementing the measures. The insolvency plan can finally authorise the insolvency administrator to implement the measures described.

For the preparation of sound insolvency plans, our appointed insolvency administrators approach our experts from the fields of taxation, labour law and company law. The plans are also examined by our business economists from the reorganisation and restructuring division for feasibility and are discussed with the parties involved. This is how PLUTA creates insolvency plans that satisfy diverse interests and are successful in practice. Our experience enables us to negotiate with the creditors in a factual and goal-oriented manner in order to obtain their approval. In doing so, a high level of experience and intuition and sensitivity is regularly required.

Small, medium-sized and large companies can face financial difficulties. Depending on the size of the company and geographic location, insolvency proceedings are often quite different. For example, there are regional proceedings for small or medium-sized enterprises, which are rooted in the region. In such cases, it is important that the insolvency administration recognizes and takes into account specific regional characteristics. This also applies to most consumer proceedings.

However, the modern working world is increasingly characterised by national and international interdependence and global competition. As a result, there are more and more proceedings that have a national or even cross-border connection. In the case of national proceedings, it is advantageous if the insolvency administration is represented at several locations. The insolvency administrator can deploy his teams on-site, thus speeding up handling of the proceedings.

In the case of international insolvencies, considerable challenges often arise, which usually necessitate a lot of experience and a well-established network on the part of the insolvency administrator - especially if corporate legal structures appear. For cross-border proceedings within the EU, the European Insolvency Regulation (EuInsVO) has been applied since 2002. In these proceedings, the debtor's assets are spread over several EU member states. In 2017 the new version of the EuInsVO became applicable. The new regulation, for example in the area of corporate insolvency, attempts to reduce the content-related shortcomings of the original version.

PLUTA handles proceedings efficiently. This applies not only for regional, but also for national and international large-scale proceedings, because we are represented nationwide in Germany and also operate branches in Italy and Spain. We provide our business partners with continuous support for their activities and proceedings with our international desks in these countries as well as across borders.

Value retention by continuation of operations, increasing insolvency assets by complete analysis and assertion of insolvency claims: this is our premise. We pursue a clear objective in each proceeding to achieve the best for all parties involved.