Core companies belonging to the German Property Group (formerly Dolphin Trust) have filed for insolvency protection with the Bremen Local Court (Insolvency Court). The Bremen Local Court has in turn appointed well-known GÖRG insolvency expert Prof. Dr. Gerrit Hölzle to serve as preliminary insolvency administrator in the context of an insolvency for the entire group.
The companies now under insolvency protection consist of financing and coordination hubs within the diverse and substantial German Property Group and include the eponymous German Property Group GmbH itself. Successive insolvency filings for the more than one hundred project development companies belonging to German Property Group will take place shortly in a sequence agreed on with the court for procedural efficiency.
GÖRG Partner Gerrit Hölzle commented: “In spite of the complex and diverse creditor structure of the German Property Group and the exceptionally large number of separate legal entities comprising the group, Germany’s insolvency law framework is well-suited for the management of this situation. German insolvency law is founded on the fair and equal treatment of similarly-situated creditors – a German insolvency proceeding ensures above all that creditor interests are carefully protected as of the insolvency filing and that each creditor is treated equitably. All efforts will now be taken to ensure fair and efficient resolution of the German Property Group for the benefit of its creditors. We are confident that German Property Group’s many stakeholders, including affected municipalities throughout Germany, will also benefit from the structure and clarity imposed by this insolvency proceeding”.
Preliminary Insolvency Administration
GÖRG Partnerschaft von Rechtsanwälten mbB / GÖRG Rechtsanwälte/Insolvenzverwalter GbR
Prof. Dr. habil. Gerrit Hölzle, Partner, Restructuring & Insolvency Administration, Bremen
About German Property Group
The German Property Group is a German-based property investment business specialised in acquiring unique historical German real estate, typically from municipalities and local authorities, then renovating these properties while maintaining their historical nature and reselling them on to private purchasers. The German Property Group’s portfolio consists of a substantial number of properties in various stages of development and/or renovation. The German Property Group attracted significant media attention in 2019 when news agencies alleged that numerous development projects were well behind schedule. The German Property Group was apparently financed largely through private non-institutional investors, mainly originating outside of Germany (UK, Ireland and Asia). These creditors’ various claims will now be channelled and managed together in the controlling German proceedings.
