ILUVerfahren

ILUVerfahren is a term used in German-speaking countries to refer to a specific type of legal procedure. The abbreviation ILU stands for "Insolvenz und Liquidationsverfahren," which translates to "Insolvency and Liquidation Proceedings." This legal framework governs the process by which a company or individual that is unable to meet its financial obligations is managed.

The ILUVerfahren is initiated when a debtor becomes over-indebted or illiquid, meaning they can no longer pay their debts as they become due or their liabilities exceed their assets. The primary goal of the procedure is to manage the debtor's assets, either by reorganizing the business to make it viable again (restructuring) or by selling off assets to repay creditors as much as possible (liquidation).

Key aspects of the ILUVerfahren include the appointment of an insolvency administrator who takes control of the debtor's affairs. This administrator is responsible for assessing the financial situation, identifying assets, and developing a plan for either restructuring or liquidation. Creditors are then invited to submit their claims, and the administrator works to distribute any available funds according to legal priorities.

The specific regulations and procedures for ILUVerfahren are detailed in national insolvency laws, such as the Insolvenzordnung (InsO) in Germany. While the underlying principles of insolvency and liquidation are similar across jurisdictions, the term ILUVerfahren is specific to the legal context of German-speaking nations. The outcome of an ILUVerfahren can vary significantly, ranging from a successful reorganisation that allows a business to continue operating to the complete dissolution of the entity.