How can I best protect my GmbH from insolvency?
May 15, 2022 | 45,00 EUR | answered by Otto König
Dear Attorney,
I am Rolf Heinze, the managing director of a GmbH that has run into financial difficulties due to the current economic situation. Revenues have plummeted and the liquidity of the GmbH is severely at risk. I am very concerned about the future of my company and am wondering how I can best protect my GmbH from insolvency.
At the moment, the GmbH is not yet in insolvency proceedings, but we are on the verge of becoming insolvent. Creditors are putting pressure on us and I fear that insolvency is inevitable if no action is taken.
I have already tried to cut costs and explore new revenue sources, but so far this has not yielded the desired results. Therefore, I am seeking specific solutions to prevent insolvency of the GmbH.
What options are available to me as managing director to protect the GmbH from insolvency? Are there legal measures I can take to secure liquidity and restructure the company? How can I reassure creditors and prevent insolvency?
I would be very grateful if you could provide me with specific recommendations for action to protect the GmbH from insolvency. Your expertise in corporate law is of great importance to me, and I hope for a quick and effective solution for my company.
Sincerely,
Rolf Heinze
Dear Mr. Heinze,
Thank you for your trust and your candid words regarding the financial situation of your GmbH. It is understandable that you are concerned about the future of your company, especially given the challenging economic circumstances. I would like to offer you some specific recommendations on how to protect the GmbH from insolvency.
First and foremost, it is important that you recognize the seriousness of the situation and take proactive steps. It is commendable that you have already taken measures to reduce costs and increase revenue, but these may not be sufficient to solve the liquidity problems of your GmbH. In such a situation, you should consider further steps.
One option available to you as managing director is to initiate a restructuring process under the Law for Further Facilitation of the Restructuring of Companies (ESUG). Through such a process, you can try to stabilize the financial situation of your GmbH and prevent insolvency. A restructuring plan will be developed that takes into account the interests of both creditors and the company.
Furthermore, you can try to negotiate with your creditors and reach an out-of-court agreement. This can be done, for example, through a debt settlement or a payment plan. It is important that you communicate transparently and openly to gain the trust of creditors and find a mutually beneficial solution.
Additionally, you should consider whether it is advisable to engage an experienced insolvency advisor or lawyer to assist you in the restructuring of your GmbH. An expert can help you explore legal options and find a tailored solution for your company.
In conclusion, I would like to emphasize that early and professional advice is crucial in protecting the GmbH from insolvency. Therefore, do not hesitate to seek support from experts and work together to find a solution for your company.
I hope that these recommendations are helpful to you and wish you success in overcoming this challenge.
Best regards,
Otto König
