Self-administration offers management the opportunity to restructure the company independently in insolvency. The Insolvency Code distinguishes between two legal forms:
- Self-administration pursuant to Section 270a InsO
The debtor or the company is continued independently by the management, i.e. the management itself performs the function of the insolvency administrator under the supervision of a trustee. This is intended to preserve the know-how of the management, contacts with suppliers and customers and continuity in the operational management of the company and to ensure a long-term positive continuation of the company.
2. Protective shield proceedings pursuant to Section 270b InsO
In protective shield proceedings, the company is also continued by the management. However, the basic prerequisite for applying for protective shield proceedings is that there is only a threat of insolvency pursuant to Section 18 InsO. The aim of the protective shield is to draw up an insolvency plan with the aim of preserving the company or legal entity. This means, for example, that important lease agreements or other supply contracts can be saved from termination and preserved.
One Square supports you in all tasks arising in self-administration, ie in the preparation as well as in the continuation of operations, in particular in
the preparation of the insolvency application and the preparation of the certificate for self-administration in the context of the protective shield proceedings according to § 270b InsO
- Selection of the administrator and the creditors’ committee
- Organisation and communication with the insolvency court, custodian, other service providers and customers
- Preparation of liquidity planning and integrated corporate planning for the insolvency plan
- Support in the continuation of business operations
- Implementation of special insolvency and business management processes (preparation of annual financial statements, assumption of accounting under insolvency law, continuation and/or production agreements, etc.)
- Assumption of communication with suppliers, creditors and customers
One Square supports you not only in an advisory capacity, but also in the executive body as a board member, managing director or general representative and directly assumes corresponding responsibility for observing insolvency law specifics in the continuation of operations. In this way, we relieve you of the burden of operational continuation of operations, implementation of the necessary insolvency law processes and communication with all parties involved.