{"id":44097,"date":"2017-08-01T10:17:03","date_gmt":"2017-08-01T08:17:03","guid":{"rendered":"https:\/\/newserver.fyb.de\/produkt\/new-rules-of-the-game-and-opportunities-for-distressed-investors\/"},"modified":"2017-08-01T10:17:03","modified_gmt":"2017-08-01T08:17:03","slug":"new-rules-and-opportunities-for-distressed-investors","status":"publish","type":"product","link":"https:\/\/www.fyb.de\/en\/produkt\/new-rules-and-opportunities-for-distressed-investors\/","title":{"rendered":"New rules of the game and opportunities for distressed investors"},"content":{"rendered":"

Leila Roeder<\/strong> \u2014 Attor\u00adney at Law and Part\u00adner White & Case LLP, Frankfurt\/Main<\/p>\n

Riaz Janjuah<\/strong> \u2014 Attor\u00adney at Law and Part\u00adner White & Case LLP, Hamburg<\/p>\n

Dr. Martin Heid\u00adrich<\/strong> \u2014 Attor\u00adney at Law and Part\u00adner White & Case LLP, Hamburg<\/p>\n","protected":false},"excerpt":{"rendered":"

The chan\u00adged legal envi\u00adron\u00adment in Germany makes corpo\u00adrate restruc\u00adtu\u00adring easier for spon\u00adsors, credi\u00adtors of the company as well as distres\u00adsed inves\u00adtors. On the other hand, the newly intro\u00addu\u00adced flexi\u00adbi\u00adlity also leads to border\u00adline cases in which insol\u00advency law can be used to enforce corpo\u00adrate restruc\u00adtu\u00adring, as the Suhr\u00adkamp case shows.<\/strong><\/p>\n

Current market environment<\/strong><\/p>\n

The reform of German insol\u00advency law that came into force with the ESUG as well as the chan\u00adges in the German finan\u00adcing land\u00adscape entail funda\u00admen\u00adtal chan\u00adges, but at the same time also open up new oppor\u00adtu\u00adni\u00adties for distres\u00adsed investors.<\/p>\n

The chan\u00adges made by the ESUG are inten\u00added to make it easier to restruc\u00adture compa\u00adnies in insol\u00advency procee\u00addings and to make them more attrac\u00adtive to (foreign) inves\u00adtors in parti\u00adcu\u00adlar. The reform thus contri\u00adbu\u00adtes to streng\u00adthening Germany as a busi\u00adness loca\u00adtion. The main focus of the Act is to signi\u00adfi\u00adcantly streng\u00adthen the rights of credi\u00adtors, who can alre\u00adady exer\u00adcise these rights at the begin\u00adning of the insol\u00advency (appli\u00adca\u00adtion) procee\u00addings within the frame\u00adwork of a so-called preli\u00admi\u00adnary credi\u00adtors\u2019 commit\u00adtee<\/em>. Both the latter and the insol\u00advent company itself can now influence the selec\u00adtion of the insol\u00advency administrator\/supervisor<\/em> and, in parti\u00adcu\u00adlar, the type of procee\u00addings. Further\u00admore, the self-admi\u00adnis\u00adtra\u00adtion proce\u00addure was consider\u00ada\u00adbly streng\u00adthe\u00adned and supple\u00admen\u00adted by a new, less drastic vari\u00adant, the so-called protec\u00adtive shield proce\u00addure<\/em>. The feasi\u00adbi\u00adlity of insol\u00advency plan procee\u00addings<\/em> has also been signi\u00adfi\u00adcantly impro\u00adved (e.g. by enab\u00adling debt-for-equity swaps) and made more tran\u00adsac\u00adtion-proof. Since the ESUG came into force, a large number of compa\u00adnies have alre\u00adady been restruc\u00adtu\u00adred in self-admi\u00adnis\u00adtra\u00adtion and by means of insol\u00advency plans. Promi\u00adnent cases such as IVG, Centro\u00adso\u00adlar, Peide\u00adrer, Cent\u00adro\u00adtherm and Solar\u00adwatt are just a few examples.<\/p>\n

A decisive inno\u00adva\u00adtion is offe\u00adred by the refor\u00admed insol\u00advency plan proce\u00addure, accor\u00adding to which the rights of share\u00adhol\u00adders can be included in the reor\u00adga\u00adniza\u00adtion and credi\u00adtors can switch from debt capi\u00adtal to the posi\u00adtion of owner by means of the debt-for-equity swap regu\u00adla\u00adted therein.<\/p>\n","protected":false},"featured_media":41467,"comment_status":"closed","ping_status":"closed","template":"","meta":{"wp_typography_post_enhancements_disabled":false},"product_brand":[],"product_cat":[2452,2552,2568,2571,2574],"product_tag":[2355,2358,2362,2365,2370,2379,2390,2398,2404,2408,2417],"class_list":{"0":"post-44097","1":"product","2":"type-product","3":"status-publish","4":"has-post-thumbnail","6":"product_cat-ebook-en","7":"product_cat-fyb-2016-en","8":"product_cat-leila-roeder-en","9":"product_cat-riaz-janjuah-en","10":"product_cat-dr-martin-heidrich-en","11":"product_tag-heidrich-en","12":"product_tag-roeder-en","13":"product_tag-leila-en","14":"product_tag-janjuah-en","15":"product_tag-riaz-en","16":"product_tag-distressed-investors","17":"product_tag-insolvency-law","18":"product_tag-market-environment","19":"product_tag-esug-en","20":"product_tag-protective-shield-proceedings","21":"product_tag-insolvency-plan-proceedings","22":"pa_sprache-english-3","23":"pa_sprache-german","25":"first","26":"outofstock","27":"taxable","28":"shipping-taxable","29":"purchasable","30":"product-type-variable","31":"has-default-attributes"},"yoast_head":"\nNew rules of the game and opportunities for distressed investors - FYB Financial Yearbook<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.fyb.de\/en\/produkt\/new-rules-and-opportunities-for-distressed-investors\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New rules of the game and opportunities for distressed investors - FYB Financial Yearbook\" \/>\n<meta property=\"og:description\" content=\"The changed legal environment in Germany makes corporate restructuring easier for sponsors, creditors of the company as well as distressed investors. On the other hand, the newly introduced flexibility also leads to borderline cases in which insolvency law can be used to enforce corporate restructuring, as the Suhrkamp case shows. Current market environment The reform of German insolvency law that came into force with the ESUG as well as the changes in the German financing landscape entail fundamental changes, but at the same time also open up new opportunities for distressed investors. The changes made by the ESUG are intended to make it easier to restructure companies in insolvency proceedings and to make them more attractive to (foreign) investors in particular. The reform thus contributes to strengthening Germany as a business location. The main focus of the Act is to significantly strengthen the rights of creditors, who can already exercise these rights at the beginning of the insolvency (application) proceedings within the framework of a so-called preliminary creditors' committee. Both the latter and the insolvent company itself can now influence the selection of the insolvency administrator\/supervisor and, in particular, the type of proceedings. Furthermore, the self-administration procedure was considerably strengthened and supplemented by a new, less drastic variant, the so-called protective shield procedure. The feasibility of insolvency plan proceedings has also been significantly improved (e.g. by enabling debt-for-equity swaps) and made more transaction-proof. Since the ESUG came into force, a large number of companies have already been restructured in self-administration and by means of insolvency plans. Prominent cases such as IVG, Centrosolar, Peiderer, Centrotherm and Solarwatt are just a few examples. 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