What options are available to avoid insolvency as a transportation company?
August 18, 2022 | 50,00 EUR | answered by Xenia Lahn
Dear lawyer,
I am Claudia Wittkopf and I run a transport company, which is currently facing major financial problems. Due to the ongoing pandemic and the resulting restrictions in business operations, our revenues have decreased drastically. We can barely cover the ongoing costs for vehicles, personnel, and rent, and are therefore on the verge of insolvency.
I am very concerned about the future of my company and wonder what options there are to avoid insolvency. Are there any legal steps we can take to improve our financial situation? Should we file for insolvency or are there other measures we can take?
I would greatly appreciate it if you could provide me with some recommendations and solutions to help save our transport company from going under. We are willing to take all necessary steps to secure our existence.
Thank you in advance for your help and support.
Sincerely,
Claudia Wittkopf
Dear Mrs. Wittkopf,
I am sorry to hear that your transportation company is currently facing financial difficulties. The impact of the pandemic has hit many companies hard, especially in the transportation and logistics industry. It is important that you take quick action to avoid bankruptcy and save your company.
First of all, it is advisable to conduct a thorough analysis of your financial situation. Review your income and expenses to determine where savings can be made and how you can improve your liquidity. You may be able to renegotiate contracts, cut costs, or explore alternative sources of income.
There are also legal steps you can take to improve your financial situation. For example, you can negotiate with your creditors to extend payment deadlines or arrange installment payments. An out-of-court debt settlement can help reduce your debts and increase your liquidity.
Bankruptcy should only be considered as a last resort if all other measures have failed. Bankruptcy proceedings can be very complex and require the support of an experienced bankruptcy lawyer. It is important to seek advice early on to make the right decision for your company.
I strongly recommend that you contact a specialist lawyer in bankruptcy law to discuss your specific situation and find tailored solutions. An expert can help you prepare a bankruptcy application if necessary, or show alternative ways to save your company.
I hope this information is helpful to you and supports you on the right path to restructuring your transportation company. Do not hesitate to contact me if you have any further questions or need legal assistance.
Sincerely,
Xenia Lahn
Lawyer specializing in transportation and logistics law
