Frankfurt/Main – In the Neckermann insolvency case, the 21st Civil Division of Frankfurt Regional Court has failed to properly consider crucial aspects of the events at the time, according to insolvency administrators Michael Frege and Joachim Kühne from law firm CMS.
In its preliminary initial appraisal, the court did not take sufficient account of the fact that a “going concern” forecast requires detailed business calculations spanning a period of more than a year in order to assess whether Neckermann would have had a chance of survival after running into difficulties.
The insolvency administrator is suing the then management team for EUR 19.1 million, claiming that they recognised too late that the company was insolvent and continued to make unjustified payments.
The court is accused of wrongly focusing solely on the crisis negotiations conducted at the time, which had in fact offered a glimmer of hope. Michael Frege commented: “Desperate last-minute negotiations are usual when companies falter, but are no substitute for going-concern forecasts based on careful analysis of business data.”
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