We are a leading specialist law firm for the real estate industry in Germany and advise institutional investors and developers on all legal, tax, and regulatory aspects. This includes insolvency law, and it has taken on an increasingly prominent role since 2020:

  • Since the pandemic, many landlords have been confronted with insolvency proceedings and reorganization plans for retail and restaurant tenants.
  • Since the sharp increase in interest rates and construction costs following the war in Ukraine, we are increasingly seeing cases where developers cannot complete their projects because they run out of funds. Our clients include institutional investors who have purchased the projects before the oonset of the crisis via forward transactions and now have to deal with their seller's insolvency administrator.
  • Our clients are other developers who want to take over projects from competitors in crisis. In these cases, the focus should be on minimizing the risks if the competitor later has to file for insolvency. You want to avoid getting trapped in a situation where the seller's administrator can retrospectively cancel the deal and ask you to return the project in return for an insolvency quota of the purchase price. What can you do to minimize the respective risks?
  • Since July 2023, the press has reported a wave of insolvency filings among project developers. Should companies be sent into insolvency if talks with financing banks are not promising and substantial additional equity injections are required? What alternatives exist where an insolvency application can be avoided in coordination with the financing banks?
  • We help insolvency administrators of project companies in the review and negotiatition of amendments for existing lease and contruction contracts and sale and purchase agreements plus provide real-estate specific tax know-how;

Since 2020, we have built a "Restructuring and Insolvency Law"-Team of lawyers and tax advisors to address these situations and support our real-estate clients with these questions.

If our client is threatened with insolvency, we will get a partner law firm on board specializing in insolvency administration and consulting. This partner firm is available to increase the chances of self-administration if the restructuring efforts fail and, in particular, provides the Chief Restructuring Officer required by the court. We always provide the real estate law and tax know-how, and our insolvency partner law firm ensures that the managing directors and board members are removed from the "line of fire" as far as possible.

Philipp Jebens