Germany: Insolvency Claw-back Reform Provides Some Relief for Creditors

The reform of claw-back rights in German insolvency proceedings which provides for more legal certainty for creditors has become effective on 5 April 2017.

Following their interpretation by German courts, the claw-back rights under German insolvency law left creditors with severe risks and legal uncertainties if they granted deferrals or other payment accommodations to distressed debtors as they had to fear that any subsequent payments they received could be challenged (up to ten years prior to a filing for opening of insolvency proceedings over the assets of the debtor). On 16 February 2017 the German parliament (Bundestag) adopted the reform of the claw-back provisions which now provides for a better balance of interests among creditors in insolvency proceedings. On 10 March 2017, the reform passed the German federal assembly (Bundesrat) and has now become effective.

Please see full Alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Latham & Watkins LLP | Attorney Advertising

Written by:

Latham & Watkins LLP
Contact
more
less

Latham & Watkins LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.