Initial Situation
The founders of LSF Life Food System AG wanted to establish a restaurant chain featuring Thai cuisine under the imaginative name “Cha Positive Eating”. The Management Board and shareholders neglected the necessary cost control for the operation. All leases were terminated in 2009/2010 because of failure to pay rent.
The Insolvency Proceedings
Despite the termination of the leases, Ulrich Rosenkranz was able to continue business operations until a buyer was found for all locations. A subsequent review of the accounting records revealed that the company had been insolvent for months before filing for bankruptcy. This meant that payments had been made to creditors that they should not actually have received and accepted. The consequence: numerous challenge proceedings conducted successfully by the insolvency administrator.
The Result
Business operations were maintained.
Challenge proceedings led to an
increase in the insolvency assets.
Conclusion: 2021
