Unusual Agreement in Agriculture

How a Farmer Secured His Remaining Assets

Insolvency administration in agriculture is often very lengthy because there are still effective leases and land that is being cultivated. This case lasted only a year and a half.

Insolvency Administrator

Nils Eggers

BRRS Office

Ribnitz-Damgarten

Local Court

Stralsund

Proceedings

Standard Insolvency Proceedings

Key Facts

Agriculture, 350 hectares of leased and owned land

Result

Discontinuation of the proceedings

Period

2017–2019

Initial Situation

A farmer has tax debts with the fiscal authorities and unpaid contributions to the health insurance company, which ultimately also files the petition for insolvency. The farmer initially does not cooperate with the insolvency administrator.

The Insolvency Proceedings

A phase of refusal and resistance on the part of the debtor is not an infrequent occurrence during insolvencies. The insolvency administrator has the task of obtaining the clearest possible picture of the actual asset situation, and this requires the assistance of the persons concerned. In this case, the farmer initially stonewalled and did everything possible to avert insolvency. Nevertheless, attorney Nils Eggers was able to obtain sufficient information and the insolvency proceedings were initiated. When the farmer realized that he was not getting anywhere with his attitude, he abruptly changed his behavior and took exactly the opposite tack. He checked in daily and sent incessant questions and messages. At the same time, he concluded agreements with all his creditors during background discussions to prevent his possessions, i.e., his machinery and land, from being liquidated in the insolvency proceedings. By taking this approach, he achieved something that insolvency administrator Nils Eggers has never experienced before or since; only parts of the assets were liquidated — none of the assets on which the farmer was dependent were touched — the insolvency proceedings were discontinued with the consent of the creditors, and the generated insolvency assets were released to the farmer.

The Result

Discontinuation of proceedings
Conclusion: 2019
Debtor retained a part of his assets

Further Reference Proceedings from Nils Eggers

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