Restructuring & Insolvency

We have a high-performing Restructuring and Insolvency team, which has many years of practical experience dealing with complex restructurings at all stages of crisis. In addition, we advise companies on all legal and economic consequences that result from having business relations with companies which undergo an economic crisis or against whom insolvency proceedings have already been instituted.

Working together with our clients, we develop tailor-made restructuring approaches that take both the stage of the crisis and the interests of the relevant stakeholders adequately into account. In doing so, our restructuring experts benefit from the advantages of belonging to a full-service law firm and work from the start consistently in teams that are made up of well-proven and recognised specialists and, therefore, combine all case-specific legal and industry know-how. As a result, our clients do not only benefit from our restructuring and financing expertise, but also from our industry expertise, which has been developed by special industry groups over many years. We can perform the following measures at very short notice, taking into account all industry-specific regulations and customs: moratoriums and standstill agreements, reorganisation financing and debt rescheduling, debt-to-equity swaps, corporate restructuring and corporate finance transactions (e.g. transformations, spin-offs, hive-downs, carve-outs, distressed mergers and acquisitions, new capital interests, including from the area of venture capital), restructuring within the context of structured insolvency proceedings with or without the debtor in possession and with or without an insolvency plan.

Our Restructuring and Insolvency team assists you at very short notice when your contract partner is in crisis, on the verge of insolvency or has already become insolvent in order to ensure that this situation does not lead to economic difficulties for your own company. If we are timely called in when the insolvency of a contract partner emerges, we can keep the financial losses for your company to a minimum. In the event of a contract partner’s insolvency, the (preliminary) insolvency administrator should be dealt with in a target-oriented manner, in particular when enforcing security interests (rights to the separation and recovery of assets and rights to the separation of assets for the purposes of preferential satisfaction). In addition, a focus must continuously be on preventing and, subsequently, defending against unjustified rescission claims.

Our range of advisory services

Restructuring and reorganisation concepts
  • Providing comprehensive and timely reorganisation and restructuring advice (corporate law, employment law and insolvency law)
  • Close cooperation and consultation with audit firms/tax advisors in preparing reliable budgets
  • Advising on reorganisation through insolvency proceedings
  • Developing strategies for how to prevent having to file for insolvency, for example, by means of subordination agreements or letters of comfort
  • Advising on the use of alternative financing instruments
Standard insolvency proceedings, insolvency plan proceedings, debtor-in-possession and protective proceedings
  • Assisting with the drafting of the application to institute insolvency proceedings
  • Providing comprehensive advice on the risks involved for the managing directors/shareholders and providing an assessment of these risks
  • Advising on the insolvency administrator’s claims (if any) against the managing directors/shareholders
  • Reducing the criminal consequences (if any) for the managing directors/shareholders to a minimum
  • Advising on the reorganisation of the company through an insolvency plan
  • Assisting with preparatory measures for protective proceedings with the debtor in possession
  • Preparing and carrying out protective proceedings
  • Drafting a detailed and complete insolvency plan (consisting of the descriptive part setting out all the information needed to make a decision as to whether to approve the insolvency plan and the constructive part setting out how the legal position of the parties involved will change as a result of the insolvency plan)
  • Assisting with the implementation of debtor-in-possession proceedings
Distressed M&A, advice to investors/reorganisation by transfer
  • Structuring transactions
  • Carrying out legal due diligence reviews
  • Advising investors on the acquisition of a company prior to and after the institution of insolvency proceedings against this company
  • Advising the insolvency administrator/shareholder/managing director on how to best carry out reorganisation proceedings (“reorganisation by transfer”) with a view to continuing the company or parts of the company
  • Advising administrators on the enforcement of justified rescission claims
Corporate law for companies in crisis
  • Advising on all corporate law issues when a company is in crisis

 

Advice to a company’s executive and supervisory bodies, advice to shareholders
  • Providing comprehensive advice on the risks involved for the managing directors/shareholders and providing an assessment of these risks
  • Advising on the insolvency administrator’s claims (if any) against the managing directors/shareholders
  • Reducing the criminal consequences (if any) for the managing directors/shareholders to a minimum
Advice to creditors
  • Advising on how to deal with corporate purchasers and suppliers that are insolvent or in crisis
  • Drafting supply contracts, general terms and conditions, framework agreements, etc. taking into account the risk of insolvency
  • Providing comprehensive, competent and – above all – quick help upon a contract partner becoming insolvent
  • Providing creditor coaching in the event of insolvency proceedings, for example, if a creditor is a member of the creditors’ committee
  • Advising creditors on their defence against unjustified rescission claims
White-collar crime and criminal tax law
  • Reducing the criminal consequences (if any) for the managing directors/shareholders to a minimum
  • Preparing, and representing clients in, negotiations with the investigating authorities
  • Representing clients in criminal proceedings (if any) in criminal insolvency, balance-sheet or tax law proceedings
Financing companies in crisis, double trust
  • Advising companies, banks and other financial creditors, and shareholders during a debtor’s crisis and insolvency
  • Assisting with the negotiations with financial creditors and/or the debtor
  • Advising on refinancing transactions, reorganisation loans, corporate actions, debt-equity swaps
  • Advising on the restructuring of bonds
  • Advising on how to implement a double trust
Insolvency employment law
  • Planning and implementing restructuring and outsourcing concepts
  • Advising on terminations, the conclusion of cancelation agreements, and representation in proceedings aimed at obtaining protection against unfair dismissal
  • Drafting and negotiating social compensation plans and reconciliation-of-interests agreements
  • Devising variable working time and remuneration models for employees
Tax law for companies in crisis and insolvency
  • Restructuring near-insolvent companies
  • Devising tax structures for transactions of companies in crisis
Real estate law
  • Real estate law

 

Crisis-specific commercial and distribution law
  • Advising on how to deal with corporate purchasers and suppliers that are insolvent or in crisis
  • Drafting supply contracts, general terms and conditions, framework agreements, etc. taking into account the risk of insolvency
  • Ensuring reliable supplies in the event that the contract partner is in crisis or insolvent
International restructurings
  • Acting as the central contact for all aspects of the legal implementation of national and international reorganisations and/or transactions
  • Setting up an international team of lawyers. For this purpose, we can draw on a group of appropriately experienced lawyers from more than 70 jurisdictions
  • Developing a legal project plan that contains a detailed description of all the required legal steps and outlines all processes clearly and in accordance with your needs
  • Central budget planning, monitoring and invoicing for all lawyers
  • Ensuring the transparency of all draft agreements by means of uniform documentation
  • Monitoring the timely implementation in accordance with the project plan

News

19.12.2024 Blog
Interruption of proceedings upon insolvency – “What now?”
25.11.2024 Blog
Former managing director’s extended liability for failure to file for insolvency – Federal Court of Justice judgment of 23 July 2024, case no. II ZR 206/22
13.09.2024 Blog
Insolvent hospitals – a risk for the medical supply industry
09.07.2024
Private Equity: Luther advises Ancala on takeover of Solandeo
28.03.2024 Press Release
Reorganisation of the hospital landscape: Merzig-Wadern district relies on Luther for entry into Merzig hospital

Key Contact >>

Key Contact

Gunnar Müller-Henneberg

Partner

T + 49 711 9338 24760