…in Düsseldorf:
 > Prof. Dr. iur. Holger Linderhaus
 > Oliver Langen

Insolvency Law / Crisis Management

The German economy is still regarded as one of the wealthiest in the world. Yet 30,000 insolvencies in 2008 tell a rather different story. This trend has continued unbroken into 2009 and beyond. There is a lack of well-established mechanisms for dealing with business crises. The destruction of public capital value and the loss of jobs are still accepted as being the economic solution. This is too short-sighted a view.  We must assume that at least 40% of all company failures could have been avoided with timely and expert advice. What is required is crisis intervention management.

LSL LAWYERS advise companies both before and during a crisis with the clear objective of carrying on before and during the insolvency. The challenges are many and varied, and they can only be overcome with the direct involvement of the client and, where appropriate, additional advisers. The first thing to do is to secure the status quo and to avoid acute erosion into total collapse. On such a basis, the legal consequences of any necessary strategic new direction need to be examined, any restructuring must be legally bolstered, staff and cost management needs to be provided and negotiations with creditors must be organised.

Insolvency-related liability cases are frequently not well understood, even by experienced business people, and are to be avoided.

The bottom line has to be: “The show must go on!”