In order to navigate a company in a financial crisis, the captain must know the threatening shallows. The course is for this reason divided into two parts. Firstly, an overview of the German corporate insolvency law will be given covering the following three topics: (i) the main insolvency proceedings, e.g. liquidation, insolvency plan and self-management; (ii) the interaction between the insolvency administrator, the company and its creditors (including enforcement and directors’ liabilities); and (iii) international insolvency law (in particular, the EU-Insolvency Regulations).
After studying the law of insolvency, the second part of the course deals with the challenges and opportunities of a successful restructuring implemented in order to stabilize the company and to preserve value outside of insolvency proceedings. This part will focus on a financial restructuring using the typical tools such as standstills, fresh money, debtor warrants and debt equity swaps. Case studies will be conducted for this part.
Students are encouraged to actively participate in class by making contributions as regard the insolvency law and restructuring experiences from their own jurisdictions.