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Restructuring, Corporate Rescue & Insolvency

In times of economic crisis, many companies are faced with uncertain business prospects: demand drops, while strong competitors take advantage of the situation to step up the pressure. Long-term financial commitments remain, but customers’ ability to pay becomes compromised. Fortunately, taking prompt action to address these challenges often enables looming problems – or even insolvency – to be avoided.

That is the primary objective of our advice: adopting a pragmatic approach to deliver sustainable solutions tailored to your specific needs.

Our long experience of advising in restructuring and insolvency scenarios enables us to provide dependable support throughout the restructuring process. Working closely with you and your other professional advisers as required, we develop a strategy to secure the future of your business.

In addition to advising distressed companies on how to avoid insolvency and in cases where insolvency is imminent, we also provide support during insolvency itself. The experience gained by our insolvency specialists as court-appointed insolvency administrators is particularly beneficial here. CMS Germany is extremely well positioned to handle restructuring and insolvency matters, not least due to the broad range of advice we provide, which enables close cooperation between specialists across all relevant legal fields and issues.

Relevant legal fields

Labor, Employment & Pensions

  • Deviant collective bargaining agreements in restructuring scenarios, “Pforzheimer” agreements, collective agreements on job security, company job-protection schemes, alterations to benefit commitments, reduced working hours and pay adjustments
  • Managing redundancies in a socially responsible manner, transitional solutions, transfer companies, qualification programmes
  • Outsourcing, focusing on core business, mergers and spin-offs under the Transformation Act [UmwG], business closure

Commercial

  • Legal advice for companies whose business partners are facing a crisis
  • Contractual protection to cover business partner insolvency
  • Contract design, taking industry-specific aspects into account (e.g. automotive sector)
  • Securing and enforcing creditors' rights

Distressed M&A

  • Acquisition of companies in financial difficulties and after insolvency
  • Sale and purchase of distressed assets (distressed debts, distressed companies)

Finance

  • Restructuring of financing arrangements (repayment holidays, adjustment of terms, additional collateral)
  • Consequences of breaching financial covenants and the associated options plus other credit difficulties
  • Accessing additional sources of finance (e.g. factoring, leasing models, profit participation rights, bonds, state-funded development schemes)
  • Conversion of debt into equity capital (debt equity swaps)

Corporate

  • Advice on possible courses of action when faced with insolvency
  • Helping executives and supervisory board members to avoid potential liability in crisis situations
  • Capital increases for companies in financial difficulties, shareholder contributions
  • Carve-out of operating units
  • Structuring of group finance (loans and collateralization within the group, physical and virtual cash pooling)
  • Mergers and spin-offs under the Transformation Act [UmwG]

Real Estate & Construction

  • Mobilisation of assets via sale and lease back
  • Increasing efficiency and cutting costs through strict property management (tenancy management, outsourcing, etc.)

Insolvency

  • Preparation for an orderly insolvency
  • Assessing the obligation to file for insolvency and grounds for doing so
  • Drawing up an insolvency plan
  • Self-administration
  • Enforcing the rights of creditors and creditor groups in insolvency proceedings, representation on creditor committees
  • Negotiating going-concern agreements with the insolvency administrator

Tax / Auditing

  • Maximising efficient use of losses when restructuring a group of companies
  • Tax-related aspects of financing during restructuring
  • Determining overindebtedness and assessing going-concern predictions
  • Valuation of company operations intended for sale

Our References

  • BBS | Rescue advice
  • Brochier | Advising the insolvency administrator during insolvency proceedings, including advice on a possible change of registered address
  • Burdale / Wachovia | Refinancing of the Rosenthal Group
  • Fresenius AG | Advice on corporate restructuring
  • Georg v. Opel GmbH | Advising sister companies, subsidiaries and management during insolvency
  • Hymer AG | Advice on internal group restructuring and on the proposed creation of a public limited company
  • Lehman Brothers | Insolvency administration of the German subsidiary, handling cross-border group insolvency proceedings
  • Lincoln Electric / Lincoln Smitweld | Advice on reorganisation of German subsidiaries and on business processes in Belgium
  • MAG Industrial Automation Systems | Restructuring advice relating to the group’s German companies
  • Schefenacker Group | Finance and corporate law restructuring advice
  • TXU | Insolvency law and rescue-related advice provided to a subsidiary
  • US steel producer | Advice on reorganisation of German subsidiaries and divisions in preparation for the sale of various equity interests
  • WCM | Insolvency administration, sale of several group companies

Führende Kanzlei für Insolvenzrecht: „Beim Insolvenzrecht zieht CMS Deutschland auf und davon – Die Großkanzlei erhält sieben Empfehlungen und liegt damit auf dem Spitzenplatz“

Kanzleimonitor 2020/2021
12/07/2021
Re­si­li­enz – Leit­faden für Geschäfts­führ­er und Un­ternehmens­jur­isten
Ger­ät ein Un­terneh­men oder sein Ver­trag­s­part­ner in die Krise, muss das Un­terneh­men nicht nur ro­bust aufges­tellt, son­dern auch an­pas­sungs­fähig genug sein, um auf die ver­änder­ten Gegeben­heiten schnell...
Pod­cast CMS To Go - Re­struc­tur­ing in­stead of clos­ing
Now also avail­able to listen to: In “Re­struc­tur­ing in­stead of clos­ing”...
Kris­en-Check-Tool für Un­terneh­men
(in Ger­man)

Feed

26/07/2021
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Düs­sel­dorf – The x+bricks Group has signed a con­di­tion­al pur­chase agree­ment with the SCP Group for 34 gro­cery-anchored prop­er­ties in Ger­many with a total rent­al area of some 425,000 square metres...
19/01/2021
In­ter­na­tion­al CMS team ad­vises Ad­vanced Cap­it­al Man­age­ment Sch­weiz AG on...
Düs­sel­dorf – Ad­vanced Cap­it­al Man­age­ment Sch­weiz AG has ac­quired all the shares in Sap­ro­fil S. à r. l., a French pro­du­cer of met­al wire parts for the house­hold ap­pli­ance in­dustry, from DRADURA Hold­ing...
30/06/2020
CMS sup­ports on suc­cess­ful clos­ing of the ac­quis­i­tion of the real,- Group...
Dus­sel­dorf - The ac­quis­i­tion of the en­tire real,- Group de­part­ment store chain from Metro AG by SCP Group S.à r.l. was suc­cess­fully com­pleted on 25 June. With the clos­ing of the trans­ac­tion, SCP takes...
13/09/2019
CMS ad­vises ma­chine tool man­u­fac­turer Ok­uma on ac­quis­i­tion of long-stand­ing...
Co­logne – The European sub­si­di­ary of Ja­pan­ese CNC ma­chine tool maker Ok­uma has fully ac­quired Hom­mel CNC Tech­nik GmbH (HCT) from the Hom­mel Group, to­geth­er with its 100-plus em­ploy­ees. The parties agreed...
23/05/2019
Cross-bor­der re­struc­tur­ing – na­tion­al and re­gion­al per­spect­ives
Please join us for a new series of CMS we­binars titled "Cross-bor­der re­struc­tur­ing - na­tion­al and re­gion­al per­spect­ives". The new series starts on 15 Novem­ber and cov­ers 24 coun­tries: Ro­mania, Bul­garia...
28/03/2018
CMS ad­vises Dan­ish tex­tile firm Kvad­rat on ac­quis­i­tion of SAHCO out of...
Frank­furt/Main – Dan­ish tex­tile com­pany Kvad­rat A/S has ac­quired long-es­tab­lished firm SAHCO Hesslein GmbH & Co. KG out of in­solv­ency. The Scand­inavi­an group is aim­ing to boost its in­ter­na­tion­al pres­ence...
24/02/2015
CMS ad­vises Aure­li­us on ac­quis­i­tion of European Crafts busi­ness of Coats...
Stut­tgart – The Mu­nich-based Aure­li­us Group has ac­quired the European Crafts busi­ness of UK com­pany Coats plc, the world's lead­ing man­u­fac­turer of sew­ing threads, craft yarns and craft ac­cessor­ies...
04/02/2015
CMS ad­vises TRUMPF on ac­quis­i­tion of EHT Werkzeug­maschinen GmbH
Stut­tgart – TRUMPF has reached an agree­ment with the cur­rent share­hold­ers on the com­plete ac­quis­i­tion of EHT Werkzeug­maschinen GmbH, a mech­an­ic­al en­gin­eer­ing com­pany based in the South Baden town of...
16/12/2014
CMS ad­vises on ma­jor in­solv­ency: sale brings new per­spect­ives for Scher­er...
Mu­nich – CMS Hasche Sigle has ad­vised the in­solv­ency ad­min­is­trat­or in con­nec­tion with one of the largest bank­ruptcies of 2014. The firm also provided ad­vice on the as­so­ci­ated M&A pro­cess to the in­solv­ency...
14/11/2014
CMS ad­vises on suc­cess­ful sale of in­solv­ent Druck­Chemie to Langley Hold­ings
Frank­furt/Main - The DC Druck­Chemie Group is be­ing sold to the Brit­ish in­dus­tri­al group Langley Hold­ings plc. In­solv­ency pro­ceed­ings were opened in re­la­tion to DC's par­ent com­pany in Septem­ber 2014. The...