Eigenverwaltung

Eigenverwaltung, or self-administration, is a form of insolvency proceedings under German law (Insolvenzordnung, InsO) in which the debtor company continues to manage its business and assets, rather than having an external insolvency administrator take over operations. In this arrangement a court may appoint a supervisory trustee (Sachwalter) who monitors the proceedings and can veto or require consent for significant decisions, while the management remains with the debtor. The aim is to preserve value and enable a credible restructuring or insolvency plan.

The legal framework allows Eigenverwaltung when there is a plausible prospect of restructur­ing the business and the debtor can present a credible plan to restore solvency. It can be used within a regular insolvency proceeding or, in some cases, as part of a pre-insolvency protective shield (Schutzschirmverfahren) that gives time to prepare a restructuring while operations continue under court supervision. The creditor committee and, where applicable, the court must assess the restructuring concept, and the supervisory trustee ensures that operations and asset preservation comply with the estate’s interests.

In practice, the debtor retains day-to-day management, but major decisions and transactions beyond ordinary course typically require consent of the Sachwalter or the court. The insolvency estate remains the basis for creditor claims, and the proceedings may culminate in an insolvency plan, a liquidation, or other restructuring outcome. Eigenverwaltung is intended to maximize going-concern value and can be preferable for viable businesses in distress, compared with full external administration.

See also insolvency law, InsO, Sachwalter, Gläubigerausschuss, Insolvenzplan, Schutzschirmverfahren.