How can I protect myself from insolvency of my GmbH?
July 9, 2022 | 40,00 EUR | answered by Christian Ahlert
Dear Sir or Madam,
I am Claudia Siebert, managing director of a GmbH, and I am currently very concerned about the financial situation of my company. Due to the effects of the Corona pandemic, sales have drastically reduced and the liquidity of the GmbH is in serious danger. I fear that we could slide into insolvency in the near future and therefore would like to be informed early on about possible protective measures.
The current situation is that the income is not sufficient to cover all ongoing costs, and we are already reliant on loans to keep the business running. Debts are accumulating and creditors are putting pressure on us. However, I would like to avoid insolvency and therefore want to know what measures I can take to save my company.
My worries are great, as insolvency would not only mean the end of my GmbH, but could also have personal consequences for me as managing director. Therefore, I want to do everything in my power to prevent insolvency and secure the future of my company.
Therefore, my question to you is: How can I protect my GmbH from insolvency? What legal options are there to avert insolvency and restructure the company? Are there actions I, as managing director, can take to improve liquidity and reduce debt?
I thank you in advance for your support and advice.
Best regards,
Claudia Siebert
Dear Mrs. Siebert,
I understand your concerns about the financial situation of your GmbH due to the impact of the Corona pandemic. A looming insolvency can have serious consequences for your company and for you personally as the managing director. It is therefore important to act early and take possible protective measures to prevent insolvency and restructure the company.
First and foremost, it is important to analyze the exact financial state of your GmbH. This includes a detailed review of current income and expenses, existing debts and liabilities, as well as the liquidity situation. Based on this analysis, measures can be developed to improve liquidity and reduce debt.
One possible measure to improve liquidity could be optimizing accounts receivable management to ensure that outstanding invoices are paid promptly. Similarly, negotiations with suppliers for payment deferrals or installment payments could help improve liquidity.
Furthermore, there are various legal options to prevent imminent insolvency. This includes, for example, the possibility of an out-of-court restructuring, in which negotiations are conducted with creditors for a debt settlement or moratorium. Another option is insolvency in self-administration, where the company is restructured under the supervision of an insolvency administrator.
As the managing director, you bear a high responsibility for the economic situation of the GmbH. It is important that you comply with all legal obligations and do not commit insolvency delay. Timely filing for insolvency when insolvency occurs can reduce personal liability risks for you as the managing director.
I strongly recommend that you contact a specialized attorney in corporate law to discuss your individual situation and work out solutions together. Together, we can find ways to protect your GmbH from insolvency and restructure it in the long term.
I am available for any further questions and advice.
Best regards,
Christian Ahlert
Attorney at Law specializing in Corporate Law
