What legal steps can I take to protect my company from insolvency?
October 30, 2022 | 80,00 EUR | answered by Yvonne Schmidt
Dear Sir/Madam Lawyer,
I am reaching out to you as the managing director of a medium-sized company that has run into financial difficulties and I fear that insolvency is inevitable. In recent months, our revenues have significantly decreased while costs have remained constant. As a result, we are struggling to meet our ongoing obligations and are on the verge of becoming insolvent.
I am deeply concerned about the future of my company and I want to take action to avoid insolvency. Therefore, I am wondering what legal steps I can take to protect my company from insolvency. Are there options to negotiate with creditors or find alternative financing options?
I am willing to take all necessary steps to secure the liquidity of my company and to remain successful in the long term. I would greatly appreciate if you could provide me with possible solutions and inform me about the legal framework.
Thank you in advance for your support.
Sincerely,
Ulrike Beck
Dear Mrs. Beck,
Thank you for your inquiry and your trust in my expertise as a business law attorney. I am sorry to hear that your company is facing financial difficulties and you fear insolvency. It is understandable that you want to take measures to prevent such a fate for your company. In such a situation, it is important to act quickly and take the right legal steps.
First and foremost, it is important that you conduct a comprehensive analysis of your company's financial situation to get an accurate overview of current liabilities, income, and expenses. Based on this, you can then work with an experienced auditor or tax advisor to create a restructuring plan aimed at securing your company's liquidity and stabilizing its financial position.
When it comes to negotiations with creditors, a debt restructuring plan may be a way to reduce your company's debt burden and extend payment deadlines. It is important to communicate openly with creditors and convince them of the seriousness of your intentions. An experienced insolvency advisor or attorney can support you in these negotiations and help you find a solution that is acceptable to all parties.
Furthermore, there are various financing options that can help bridge short-term liquidity gaps, such as factoring, leasing, or alternative forms of credit. In this case as well, it may be advisable to seek advice from a financial expert to find the financing solution that is right for your company.
Regarding the legal framework for restructuring measures and insolvency proceedings, I would be happy to advise you in detail and show you the various options. It is important that you inform yourself early on about your legal options and, if necessary, seek professional help in a timely manner.
I am here to help you develop solutions and lead your company on a stable and successful path. Please do not hesitate to contact me to schedule a detailed consultation.
Best regards,
Yvonne Schmidt
Business Law Attorney
