Any company can find itself in economic difficulties. Whether it's declining sales, external shocks or bad decisions - the causes are manifold. But a crisis does not necessarily mean the end. With a sound reorganisation concept and the right legal instruments, impending insolvency can often be averted or even used as a fresh start.
It is important to carry out a comprehensive analysis at an early stage: What are the causes of the crisis? What measures can ensure the company's continued existence? In addition to operational and financial restructuring measures, there are various legal avenues available - from deferrals and subordination to judicial reorganisation procedures such as self-administration or protective shield proceedings.
A reorganisation requires smart planning and close coordination with all relevant stakeholders. Banks, creditors and suppliers must be convinced, internal structures adapted and economic viability restored. A crisis can only be turned into an opportunity if all measures are sensibly interlinked.
The challenges are great, but not insurmountable. The key is to set the right course in good time.
Read the full article here: Insolvenz – Auswege aus der Krise oder Krise als Ausweg?
