Betriebs-Berater 46/20: A plea for the preservation and reinforcement of self-administration
Plea for self-administration: Dr. Stefan Weniger and Dr. Georg Bernsau (K&L Gates) have published an article on the SanInsFoG in the current issue of Betriebs-Berater.
In their article, Dr. Stefan Weniger and Dr. Georg Bernsau (K&L Gates) make a plea for the preservation and strengthening of self-administration and take a critical look at the draft on the further development of restructuring and insolvency law (SanInsFoG-RegE).
„The possibility for an insolvent debtor to apply for self-administration in insolvency proceedings has been existing since the introduction of the German Insolvency Code (“InsO“) in 1999. It had initially led only a shadowy existence and was decisively changed with the German Act on the Preservation and Restructuring of Companies (“ESUG“) in 2012 according to which the court is obliged to accept the motion on the provision that the self-administration will not lead to disadvantages for creditors. The SanInsFoG significantly increases the requirements for the court order of self-administration aiming to prevent abuses, but it clearly overshoots this objective and will thus, as a result, significantly limit a debtor's restructuring options. This article takes a critical look at this issue and proposes changes to the RegE which will preserve and strengthen the institution of self-administration as an important restructuring tool. (...)“
Source: Betriebs-Berater 46/2020