Does insolvency benefit also apply in Schutzschirmverfahren or Eigenverwaltung proceedings?
Yes.
In the Schutzschirmverfahren (protective shield proceedings) and in Eigenverwaltung (debtor-in-possession management under Sections 270 et seq. of the German Insolvency Code) too, insolvency benefit (Insolvenzgeld) can be used and pre-financed if the statutory requirements are met.
What matters is:
- Insolvency proceedings must later be opened, or an application to open proceedings must be rejected for lack of assets.
- Only then is there an insolvency event within the meaning of the law.
If, on the other hand, a restructuring is achieved without insolvency proceedings being opened later, no insolvency benefit is paid. This is why early and realistic restructuring planning is so important.
The Worstbrock-Group, together with legal counsel, supports companies through:
- preparing the Eigenverwaltung or Schutzschirmverfahren proceedings
- coordination with the employment agency
- integrating the pre-financing of insolvency benefit into liquidity planning
