{"id":14557,"date":"2023-10-27T12:10:06","date_gmt":"2023-10-27T10:10:06","guid":{"rendered":"https:\/\/www.brrs-rechtsanwaelte.de\/2023\/10\/27\/leitfaden-fuer-die-krise\/"},"modified":"2024-10-31T15:42:14","modified_gmt":"2024-10-31T14:42:14","slug":"guide-to-the-crisis","status":"publish","type":"post","link":"https:\/\/www.brrs-rechtsanwaelte.de\/en\/2023\/10\/27\/guide-to-the-crisis\/","title":{"rendered":"Guide to the crisis"},"content":{"rendered":"<section class=\"l-section wpb_row height_medium\"><div class=\"l-section-h i-cf\"><div class=\"g-cols vc_row via_flex valign_top type_default stacking_default\"><div class=\"vc_col-sm-12 wpb_column vc_column_container\"><div class=\"vc_column-inner\"><div class=\"wpb_wrapper\"><div class=\"wpb_text_column\"><div class=\"wpb_wrapper\"><h2><span _d-id=\"17825\" class=\"--l sentence_highlight\">Entrepreneurs and managing directors are particularly challenged now<\/span><span _d-id=\"17826\" class=\"--r sentence_highlight\"><br \/>\n<\/span><\/h2>\n<h3><span _d-id=\"17828\" class=\"--l sentence_highlight\">The economic crisis demands sacrifices and courageous decisions<\/span><\/h3>\n<p><span _d-id=\"17833\" class=\"--l sentence_highlight\">Anyone who has been through difficult times as a managing director can tell you a thing or two about it:<\/span><span _d-id=\"17834\" class=\"--r sentence_highlight\"><br \/>\n<\/span><\/p>\n<p><span _d-id=\"17836\" class=\"--l --r sentence_highlight\">In a crisis, you often don&#8217;t really know what to do first and best. <\/span><span _d-id=\"17839\" class=\"--l --r sentence_highlight\">Because with dwindling sales and a general economic downturn, entrepreneurs and managing directors have to act quickly, correctly assess the risks and make the most of their opportunities. <\/span><span _d-id=\"17842\" class=\"--l sentence_highlight\">Not an easy task.<\/span><\/p>\n<p><span _d-id=\"17847\" class=\"--l --r sentence_highlight\">Therefore, as an experienced law firm in the field of insolvency administration and restructuring and legal partner for companies, we would like to provide you with our guide, which gives you at least a few rough guidelines on what you should, must and can do in a crisis. <\/span><span _d-id=\"17850\" class=\"--l --r sentence_highlight\">Our tips are to be understood as measures that should at least reasonably save what can still be saved. <\/span><span _d-id=\"17853\" class=\"--l sentence_highlight\">They are general in nature and are no substitute for comprehensive advice and consideration of your company and its individual circumstances.<\/span><\/p>\n<h3><span _d-id=\"25494\" class=\"--l sentence_highlight\"><span _d-id=\"25497\" class=\"--l --r hover:bg-&#091;#B4DAE8&#093; hover:dark:bg-blue-next-600\">What<\/span> <span _d-id=\"25501\" class=\"--l --r hover:bg-&#091;#B4DAE8&#093; hover:dark:bg-blue-next-600\">you<\/span> <span _d-id=\"25505\" class=\"--l --r hover:bg-&#091;#B4DAE8&#093; hover:dark:bg-blue-next-600\">can<\/span> <span _d-id=\"25509\" class=\"--l --r hover:bg-&#091;#B4DAE8&#093; hover:dark:bg-blue-next-600\">do<\/span> <span _d-id=\"25513\" class=\"--l --r hover:bg-&#091;#B4DAE8&#093; hover:dark:bg-blue-next-600\">if<\/span> <span _d-id=\"25517\" class=\"--l --r hover:bg-&#091;#B4DAE8&#093; hover:dark:bg-blue-next-600\">your<\/span> <span _d-id=\"25521\" class=\"--l --r hover:bg-&#091;#B4DAE8&#093; hover:dark:bg-blue-next-600\">company<\/span> <span _d-id=\"25525\" class=\"--l --r hover:bg-&#091;#B4DAE8&#093; hover:dark:bg-blue-next-600\">is<\/span> <span _d-id=\"25529\" class=\"--l --r hover:bg-&#091;#B4DAE8&#093; hover:dark:bg-blue-next-600\">in<\/span> <span _d-id=\"25533\" class=\"--l --r hover:bg-&#091;#B4DAE8&#093; hover:dark:bg-blue-next-600\">crisis<\/span><\/span><span _d-id=\"25495\" class=\"--r sentence_highlight\"><br \/>\n<\/span><\/h3>\n<ul>\n<li><span _d-id=\"25535\" class=\"--l sentence_highlight\">Get a reliable overview of the company&#8217;s financial situation and draw up a liquidity plan for the future.<\/span><span _d-id=\"25536\" class=\"--r sentence_highlight\"><br \/>\n<\/span><\/li>\n<li><span _d-id=\"25538\" class=\"--l --r sentence_highlight\">Put your business model to the test: Is your offer up to date? <\/span><span _d-id=\"25541\" class=\"--l --r sentence_highlight\">Is it still in line with the market? <\/span><span _d-id=\"25544\" class=\"--l --r sentence_highlight\">Are your prices acceptable? <\/span><span _d-id=\"25547\" class=\"--l sentence_highlight\">Are the opportunities and risks of your business in a reasonable relationship?<\/span><span _d-id=\"25548\" class=\"--r sentence_highlight\"><br \/>\n<\/span><\/li>\n<li><span _d-id=\"25550\" class=\"--l sentence_highlight\">Consider whether closing down or selling certain products, departments or business units could save your company as a whole.<\/span><span _d-id=\"25551\" class=\"--r sentence_highlight\"><br \/>\n<\/span><\/li>\n<li><span _d-id=\"25553\" class=\"--l --r sentence_highlight\">What can you make more efficient by restructuring it? <\/span><span _d-id=\"25556\" class=\"--l sentence_highlight\">Develop targeted restructuring models for your company &#8211; preferably together with your employees, as they often have the best ideas and then also feel that they can help to secure their jobs and not end up directly unemployed.<\/span><\/li>\n<\/ul>\n<p><span _d-id=\"25561\" class=\"--l --r sentence_highlight\"><strong>Attention<\/strong>! <\/span><span _d-id=\"25564\" class=\"--l --r sentence_highlight\">As a managing director, you are obliged to report any insolvency that has occurred and to file for insolvency. <\/span><span _d-id=\"25567\" class=\"--l sentence_highlight\">Otherwise you may be liable or even liable to prosecution for delaying insolvency.<\/span><\/p>\n<h3><span _d-id=\"25572\" class=\"--l --r sentence_highlight\">How to recognize insolvency: two conditions are decisive<\/span><\/h3>\n<\/div><\/div><div class=\"g-cols wpb_row via_flex valign_top type_default stacking_default\"><div class=\"vc_col-sm-3 wpb_column vc_column_container\"><div class=\"vc_column-inner\"><div class=\"wpb_wrapper\"><div class=\"wpb_text_column\"><div class=\"wpb_wrapper\"><p><strong>Condition 1<\/strong><\/p>\n<\/div><\/div><\/div><\/div><\/div><div class=\"vc_col-sm-9 wpb_column vc_column_container\"><div class=\"vc_column-inner\"><div class=\"wpb_wrapper\"><div class=\"wpb_text_column\"><div class=\"wpb_wrapper\"><p><span _d-id=\"29666\" class=\"--l --r sentence_highlight\"><strong>Your company is over-indebted,<\/strong> i.e. your company assets can no longer cover the existing liabilities (costs). <\/span><span _d-id=\"29669\" class=\"--l --r sentence_highlight\">According to Section 19 (2) InsO, over-indebtedness exists if the assets do not cover the existing liabilities when liquidation values are applied, unless the continuation of the company as a going concern is predominantly probable under the circumstances. <\/span><span _d-id=\"29672\" class=\"--l --r sentence_highlight\">A strong indication of over-indebtedness under insolvency law is if the item &#8220;deficit not covered by equity&#8221; appears on the assets side of your balance sheet.<\/span><\/p>\n<\/div><\/div><div class=\"w-separator size_medium\"><\/div><\/div><\/div><\/div><div class=\"vc_col-sm-3 wpb_column vc_column_container\"><div class=\"vc_column-inner\"><div class=\"wpb_wrapper\"><div class=\"wpb_text_column\"><div class=\"wpb_wrapper\"><p><strong>Condition 2<\/strong><\/p>\n<\/div><\/div><\/div><\/div><\/div><div class=\"vc_col-sm-9 wpb_column vc_column_container\"><div class=\"vc_column-inner\"><div class=\"wpb_wrapper\"><div class=\"wpb_text_column\"><div class=\"wpb_wrapper\"><p><span _d-id=\"31767\" class=\"--l --r sentence_highlight\"><strong>Your company is insolvent,<\/strong> i.e. if your company is unable to service 90% of its due and seriously demanded liabilities within three weeks &#8211; unless it is foreseeable that the coverage gap will narrow.<\/span><\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><div class=\"w-separator size_medium\"><\/div><div class=\"wpb_text_column\"><div class=\"wpb_wrapper\"><p><span _d-id=\"34275\" class=\"--l sentence_highlight\">If the bailiff is already on the doorstep and account garnishments are being received, the threshold for insolvency has usually long since been crossed.<\/span><\/p>\n<h2><span _d-id=\"34280\" class=\"--l --r sentence_highlight\">Recognize impending bankruptcy early and avert it: <\/span><span _d-id=\"34283\" class=\"--l sentence_highlight\">Filing for insolvency in the event of imminent insolvency<\/span><\/h2>\n<p><span _d-id=\"34288\" class=\"--l --r sentence_highlight\">Our tip: An application for insolvency is already possible if insolvency is only imminent. <\/span><span _d-id=\"34291\" class=\"--l --r sentence_highlight\">In a crisis, an entrepreneur is always faced with a difficult decision: should I file for insolvency due to imminent insolvency or can we get our act together? <\/span><span _d-id=\"34294\" class=\"--l --r sentence_highlight\">The possibility of filing for insolvency at an early stage can mean that a company can possibly emerge from the crisis. <\/span><span _d-id=\"34297\" class=\"--l --r sentence_highlight\">The groups involved in the company&#8217;s success &#8211; employees, shareholders, suppliers and banks &#8211; are usually more willing to move in the company&#8217;s favor during insolvency proceedings. <\/span><span _d-id=\"34300\" class=\"--l sentence_highlight\">However, it is essential that the Insolvency Code contains restructuring tools that often create new options for action that do not exist outside of insolvency proceedings.<\/span><\/p>\n<h3><span _d-id=\"34305\" class=\"--l sentence_highlight\">Necessary restructuring measures are sometimes easier to implement under insolvency conditions:<\/span><span _d-id=\"34306\" class=\"--r sentence_highlight\"><br \/>\n<\/span><\/h3>\n<ul>\n<li><span _d-id=\"34308\" class=\"--l sentence_highlight\">As a rule, social plans are easier to implement in the event of insolvency.<\/span><span _d-id=\"34309\" class=\"--r sentence_highlight\"><br \/>\n<\/span><\/li>\n<li><span _d-id=\"34311\" class=\"--l sentence_highlight\">Under insolvency conditions, long-term rental agreements can be terminated with a statutory notice period.<\/span><span _d-id=\"34312\" class=\"--r sentence_highlight\"><br \/>\n<\/span><\/li>\n<li><span _d-id=\"34314\" class=\"--l --r sentence_highlight\">Creditors are much more likely to be able to see things clearly during insolvency proceedings.<\/span><\/li>\n<\/ul>\n<\/div><\/div><div class=\"w-separator size_medium\"><\/div><div class=\"wpb_text_column\"><div class=\"wpb_wrapper\"><h3><span _d-id=\"37265\" class=\"--l sentence_highlight\">Outdated structures cannot be maintained forever<\/span><\/h3>\n<p><span _d-id=\"37270\" class=\"--l sentence_highlight\">Especially when structures that have been built up over years or decades due to the crisis can no longer be maintained, the only entrepreneurial means may be to bring about the necessary changes through insolvency proceedings.<\/span><\/p>\n<p><span _d-id=\"37275\" class=\"--l --r sentence_highlight\">This does not have to mean economic ruin for shareholders, managing directors and employees. <\/span><span _d-id=\"37278\" class=\"--l sentence_highlight\">After an appropriate change process, the business activity can be continued &#8211; often by creating a new legal entity by way of a so-called transferring restructuring.<\/span><\/p>\n<p><span _d-id=\"37283\" class=\"--l sentence_highlight\">If the core business model is correct, the necessary operating resources and employees are taken over by the new legal entity &#8211; and life goes on.<\/span><\/p>\n<p><span _d-id=\"37288\" class=\"--l --r sentence_highlight\">Our expert tip: If you require such a restructuring process, it is important that you act in good time, show foresight and seek the support of competent advisors.<\/span><\/p>\n<p><a href=\"https:\/\/www.brrs-rechtsanwaelte.de\/wp-content\/uploads\/2023\/10\/230925leitfaden.pdf\" target=\"_blank\" rel=\"noopener\">&gt; Download our guide to the crisis as a PDF.<\/a><\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>\n","protected":false},"excerpt":{"rendered":"Entrepreneurs and managing directors are particularly challenged now The economic crisis demands sacrifices and courageous decisions Anyone who has been through difficult times as a managing director can tell you a thing or two about it: In a crisis, you often don&#8217;t really know what to do first and best. Because with dwindling sales and...","protected":false},"author":2,"featured_media":12635,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[123],"tags":[],"class_list":["post-14557","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sozietaet-en"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Crisis management and insolvency avoidance: A BRRS guide<\/title>\n<meta name=\"description\" content=\"Find out how managing directors and entrepreneurs should act in economic crises. Tips for overcoming challenges and avoiding insolvency at an early stage.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.brrs-rechtsanwaelte.de\/en\/2023\/10\/27\/guide-to-the-crisis\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Crisis management and insolvency avoidance: A BRRS guide\" \/>\n<meta property=\"og:description\" content=\"Find out how managing directors and entrepreneurs should act in economic crises. Tips for overcoming challenges and avoiding insolvency at an early stage.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.brrs-rechtsanwaelte.de\/en\/2023\/10\/27\/guide-to-the-crisis\/\" \/>\n<meta property=\"og:site_name\" content=\"BRRS Rechtsanw\u00e4lte \u2013 Insolvenzverwaltung \/ Restrukturierung\" \/>\n<meta property=\"article:published_time\" content=\"2023-10-27T10:10:06+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-10-31T14:42:14+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.brrs-rechtsanwaelte.de\/wp-content\/uploads\/2022\/01\/Standort-Dortmund-Slider-05-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"996\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Thomas Baumhoff\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Thomas Baumhoff\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Crisis management and insolvency avoidance: A BRRS guide","description":"Find out how managing directors and entrepreneurs should act in economic crises. 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