Christian T. Stempfle

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Debt-equity-swaps under the German “Schutzschirmverfahren” – quite comfortable?

This post was also written by Artur Korn. German insolvency law, unlike US insolvency law, only recently introduced (in 2012) the so-called protective shield proceedings (Schutzschirmverfahren) to enable potentially illiquid and/or over-indebted debtors to restructure the company on the basis of a so-called insolvency plan. Thereby, the liquidation of a company by a future insolvency … Continue Reading

Is there a need to reform the contestation right of an insolvency administrator in the case of wilful disadvantage to other creditors (Vorsatzanfechtung) under German Insolvency law?

This post was also written by Artur Korn. If you are a creditor of an insolvent German company, you may have come across the following difficult phenomenon: your contractual counterparty is unable to pay outstanding debts when they become due. In order to maintain the business relationship you could agree to terms of payment entitling … Continue Reading

Potential invalidity of insolvency-related termination clauses under German insolvency rules

“Ipso facto”: The concept that clauses allowing for the termination of contracts purely for the insolvency of the contractual counterpart should be invalid, has long been an established principle of the Chapter 11 regime in the US.  However, in another example of trend suggesting that this approach may also be increasingly adopted in European jurisdictions … Continue Reading