Noerr LLP: Noerr European Restructuring Conference - experts praise restructuring successes under new Insolvency Law / US creditors demand greater transparency
(firmenpresse) - (DGAP-Media / 12.04.2013 / 14:23)
Noerr European Restructuring Conference - experts praise restructuring
successes under new Insolvency Law / US creditors demand greater
transparency
Frankfurt, 12 April 2013.
One year after the entry into force of the amendment to the Insolvency
Code, experts see Germany as a restructuring jurisdiction on an equal
footing with British law, Europe's previous leader in this field, and
praise restructuring successes in practice. However, international
creditors would like even more transparent proceedings in normal
insolvencies. In particular, there are complaints about the lack of clarity
regarding the costs of proceedings. Many participants at Noerr's European
Restructuring Day in Frankfurt came to this conclusion.
Well-known international restructuring experts, bankers, company
representatives and investors attending the Noerr conference discussed the
financial crisis and the consequences for restructuring multi-national
groups and banks. In addition, the practical experience of corporate rescue
was emphasised. Elmar Geissinger, former member of the executive board of
the international listed building materials group Pfleiderer AG responsible
for financial affairs, reported on the complex restructuring of the group.
The prolonged negotiations on refinancing the EUR 5 billion real estate
loan of the German Annington Group was described by Tom Campbell, Managing
Director of Debt Advisory Practice at Blackstone. The lessons for bank
insolvencies arising from the liquidation of the international investment
bank Lehman Bros. were outlined by Daniel J. Ehrmann, partner in the
management consultancy Alvarez&Marsal and US insolvency administrator of
Lehman Bros. Ehrmann also compared the german with the US proceedings.
'The international comparison made possible by the European Restructuring
Day impressively proves the competitiveness of amended German insolvency
law,' Dr. Thomas Hoffmann commented on the results of the current
restructuring cases. Hoffmann, a partner at Noerr LLP, organised the event
together with Dr. Martin Kleinschmitt, board member of Noerr Consulting AG.
The German amendment (the ESUG) to the Insolvency Code came into force on 1
March 2012. Positive experience was gained particularly in the first two
major protective proceedings under the ESUG, namely the restructuring of
Pfleiderer AG and of centrotherm photovoltaics AG. 'The ESUG's strength
became especially clear in the restructuring of centrotherm,' said Martin
Kleinschmitt. The restructuring provided an example of maintaining the
stock exchange listing of the company and, with the necessary capital
reduction, enabling the shareholders to retain 20 % of their shares. 'The
ESUG meets the requirements of the capital market and offers shareholders a
genuine alternative to out-of-court restructuring,' said Hoffmann.
International creditors, however, criticised the lack of transparency in
the course of normal insolvencies compared to US law. Above all, many US
creditors would like more clarity on the costs of the proceedings. 'The
courts in Germany apply completely different criteria so that the costs of
the proceedings are not calculable for the creditors. Legislation should
correct this,' suggested restructuring expert Hoffmann.
The first studies show that the new legislation has paved the way for
insolvency law reform. According to a recently published survey by Noerr in
cooperation with Roland Berger Strategy Consultants, 40 % of practitioners
surveyed consider that their expectations have been fulfilled, namely that
liquidations are less frequent. 'Insolvency proceedings are now more
readily understood as an opportunity not to break up a company but to
restructure it under the new rules,' emphasised Noerr partner Dr. Florian
Becker in a panel discussion which included insolvency administrators
Christian Köhler-Ma (Leonhardt Rechtsanwälte), Andreas Dörhöfer, Head of
Risk Management Advisory Group of Deutsche Bank and Daniela Bergdolt, Vice
President of the German Association for the Protection of Shareholders
(DSW).
'We expect an increased demand for restructuring in Germany this year,'
said Thomas Hoffmann. Insolvency figures rose in the last quarter of 2012.
A weakening automobile industry due to reduced sales in Europe is likely to
put pressure on the supply industry. In structurally problematic industries
such as printing or the solar industry, the risk of insolvency remains high
in Hoffmann's opinion.
Noerr is one of the top European law firms with 480 professionals in
Germany, Europe and the USA. We deliver real value to our clients by
devising and handling the right solutions to complex and sophisticated
legal matters. The Noerr difference is our unique combination of legal
excellence, creative thinking, international experience and in-depth
industry knowledge. Together with our tax advisors, auditors and management
consultants, we also develop sustainable solutions for finance and
management.
The Noerr Restructuring&Insolvency Group consists of specialists for
refinancing, restructuring, and Distressed M&A and advises listed
companies, medium-sized companies, investors, banks and insolvency
administrators on restructuring and company rescue. Since 2009, the Group
has rescued 35 companies or company divisions from crisis and insolvency.
The Noerr Restructuring&Insolvency Group is led by Dr. Thomas Hoffmann
and Dr. Martin Kleinschmitt.
Matthias Schulte
PR-Manager
Assessor jur.
Noerr LLP
Boersenstrasse 1
60313 Frankfurt am Main / Germany
T +49 69 971477418
F +49 69 971477100
M +49 171 9777705
matthias.schulte(at)noerr.com
End of Media Release
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Datum: 12.04.2013 - 14:23 Uhr
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