Private Bankruptcy in the Real Estate Sector

Office complexes financed with loans of around €400 million

In a lot of insolvency cases, the largest creditors are the banks. It is important for them to obtain a transparent overview of the debtor’s assets from the insolvency administrator.

Dr. Stephan Schlegel – Rechtsanwalt, Notar – BRRS Eschborn

Insolvency Administrator

Dr. Stephan Schlegel

BRRS Office

Eschborn

Local Court

Frankfurt am Main

Proceedings

Standard Insolvency Proceedings

Key Facts

Real Estate | Commercial Development Projects

Result

Period

Start: 08/26/2009

Initial Situation

An architect, his wife, and a real estate developer built large office complexes together. The projects were financed with very large loans, however, which ultimately led to insolvency.

The Insolvency Proceedings

In the course of the insolvency proceedings, insolvency administrator Dr. Stephan Schlegel carried out several variants of administration and liquidation of the real estate property:

  • Agreed forced sale
  • Discretionary utilization
  • Accrual through liquidation-free termination of partnerships
  • Agreed receivership
  • Silent receivership

In the course of the utilization, the BRRS attorney and partner had to take into account tax issues of income and value-added tax, the further development of which had been anticipated. Moreover, Dr. Stephan Schlegel facilitated the handling of real estate liens, also taking into account the challenge under insolvency law to the assignment of claims for restitution. The necessary challenge was regulated by mutual agreement with the involved banks in the form of a settlement, whereby it was agreed that the necessary challenge payment would become due at the end of the proceedings and could then return for the large part to the challenged banks in short order.

The Result

Real estate sold in an amicable and orderly manner
Transparent overview of assets for banks
Insolvency administrator as reliable contact for necessary liquidation steps
Conclusion: approximately 2022

Further Reference Proceedings from Dr. Stephan Schlegel

Weitzel Gebäudedienste GmbH

Proceedings: Standard Insolvency Proceedings

Industry: Facility cleaning service

Administrator: Dr. Stephan Schlegel

Private Bankruptcy

Proceedings: Insolvency Plan Proceedings

Industry: Private Bankruptcy

Administrator: Dr. Stephan Schlegel

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