Restructuring consulting is a field of activity which comprises several areas of law. It’s goal is to ensure the future existence of a company either through restructuring measures outside the insolvency proceedings or controlled insolvency proceedings. Even if this is not possible any longer it is still necessary to advise the responsible officers within the company to avoid (legal) mistakes during the crisis and reduce the risk of personal liability.

Legal advice in the field of restructuring therefore requires sound knowledge not only about company, insolvency and accounting law, but also about tax law and business administration. This allows the legal adviser to work in interdisciplinary teams with auditors, tax and business consultants, quickly capture the motivation and concept of the other consultants in the team, evaluating the necessary accounting and tax steps, pointing out the legal risks and implementing the restructuring correctly. This requires to keep the periods of insolvency application under the German Insolvency Code in mind. Neglecting these could lead to serious legal consequences in both civil and criminal law. Where possible measures will be taken to abolish a duty to apply for insolvency, which is altogether often possible.

Restructuring is often performed under massive time pressure. The legal adviser is regularly called upon in the very last moment and asked to save what can be saved. The task is then to encourage, help and advice to client to show ways and means to cope with the crisis. Besides a sound legal expertise this requires assertiveness, persuasion as well as empathy and reliability.

Advisers

Dr. Michael A. Fritz

Dr. Thilo Schülke