Protective Shield

In the department for debtor’s personal management, we conduct protective shield proceedings (Schutzschildverfahren) for entrepreneurs. By protective shield proceedings, the entrepreneur can avoid classical insolvency proceedings. Despite an application for insolvency proceedings, the entrepreneur can independently continue to manage and restructure his enterprise. Only a custodian of his own choice will be appointed. For three months, the enterprise will be protected against execution measures and, although the protective shield proceedings are no classical insolvency proceedings, the employees can obtain compensation for lost wages due to insolvency. What is also important is the fact that protective shield proceedings are not made public, and accordingly, the situation of the enterprise does not become generally known.

A prerequisite for protective shield proceedings is, however, that the application is accompanied by an acceptable rehabilitation plan making it possible to successfully restructure your enterprise. Upon successful restructuring, the managing director may possibly be released from personal liability, e. g. towards banks. In order to conduct so-called ‘protective shield proceedings’, we have been cooperating for years in a competence network with the law firm Dettmer Rechtsanwälte – Insolvency Administration and Restructuring – in Cologne and Bonn.

This includes in detail the following services:

  • Reviewing the obligation to file an insolvency petition,
  • Developing plans for protective shield proceedings,
  • Preparing the applications for protective shield proceedings,
  • Providing advice with the choice of the custodian,
  • Conducting discussions and corresponding with the court,
  • Conducting discussions and corresponding with the custodian,
  • Giving legal advice with regard to debtor’s personal management and in protective shield proceedings,
  • Giving advice on preliminary financing.

The important advantages of the protective shield proceedings are that the entrepreneur can continue to run his enterprise and that he can choose the responsible custodian himself. As a consequence, the entrepreneur keeps control of his enterprise.

Your contact: Volker v. Moers