Sanierungsfälle

Sanierungsfälle refers to a legal and economic concept in German law concerning companies that are in a state of insolvency or severe financial distress and are facing restructuring or liquidation. The term translates to "restructuring cases" or "insolvency cases" and encompasses situations where a business is unable to meet its financial obligations.

German insolvency law, specifically the Insolvenzordnung (InsO), provides a framework for dealing with these situations. The primary goal of insolvency proceedings is to provide an orderly process for creditors to satisfy their claims, either through the liquidation of assets or through a restructuring of the company.

A key aspect of Sanierungsfälle is the potential for rehabilitation. Under certain conditions, insolvency proceedings can aim to rescue the company, preserve jobs, and allow the business to continue operating. This often involves developing a restructuring plan that may include debt reduction, operational changes, or finding a new investor.

If rehabilitation is not feasible, the proceedings will lead to the liquidation of the company's assets to distribute the proceeds among creditors. The concept also encompasses the responsibilities of management, particularly the duty to file for insolvency promptly upon recognizing the company's inability to pay its debts, to avoid further damage and potential personal liability. Sanierungsfälle are a significant area of corporate law and practice in Germany, impacting businesses, creditors, and employees.