Insolvency & Restructuring
The recent years have been turbulent and marked by great uncertainty, severely impacting the liquidity and profitability of businesses in many industries. Despite various state aid measures (such as energy cost grants), many businesses are in serious distress. Not only is this a problem for the economy as a whole; it also puts shareholders of struggling businesses in a difficult situation.
CMS will help you take measures to safeguard the value of your business and the fruits of your labour, so that you can seize new opportunities when the crisis is over.
What are the effects of these measures?
Our legal advice is primarily aimed at restructuring and reorganisation, not insolvency.
All measures should contribute to restoring your shareholdings to profitability and to the sustainable reorganisation of troubled businesses. In the event that you have to divest yourself of some of your shareholdings, we will ensure that you can minimise your liability risks and are able to fully concentrate on providing your shareholder expertise in the process of reorganising your remaining holdings.
What are the key issues to consider?
A crisis situation is a race against time, and reorganisation measures always require diligent and professional preparation. For shareholders affected by a crisis, particularly unpleasant surprises can arise in the context of forbidden repayment of contributions, or if shareholder loans are deemed to substitute for equity. In rare cases, direct liability of shareholders may also be a possibility. For these reasons especially, it is essential that you are able to rely on experienced legal counsel in a crisis situation in order to make the best possible investment decisions from a legal point of view.
