This is how they succeed
When insolvency proceedings are opened, there are essentially two financial recovery concepts: The company in question will either be discontinued or transferred, at least partially. This is known as transferred financial recovery. What you need to be aware of will be explained here.
A promising financial recovery concept
The transferred financial recovery predominantly leads to successful restructurings. The valuable assets are transferred to a third party, while the liabilities remain within the company. Using the proceeds, creditors are satisfied to a greater extent. Products of the company and jobs are retained. However you must observe tax, social and labor law standards, especially those of the institute conducting the transfer of undertakings. Have one of our specialist lawyers advise you on this topic in particular, to avoid possible procedural errors and associated costs.
Legality of layoffs and when you are legally unable to conduct redundancies
Layoffs as a result of a transfer of undertakings are prohibited. As acquirer you enter into the role of employer. Note, that a dismissal is valid when the loss of the workplace is caused, not by the transfer of undertakings, but due to the financial recovery concept. For this to occur, a financial recovery plan must already have adopted tangible forms. Thus, the timing of the termination plays a crucial role and should be chosen strategically. Also note other requirements for a redundancy, such as the correct social selection. Our experience shows that for issues regarding this topic, an appointment is especially beneficial to clarify things.
What matters, when choosing your legal representation
In the case of a transferred financial recovery of a company you should best be advised by a specialist lawyer, who has specific experience in this field. Interdisciplinary skills of the labor law attorney are also essential during consultation: Aspects of corporate law, contract design or the mutual demarcations of risks play a crucial role in this regard. Therefore choose your lawyer carefully and pay attention to the specialization of the firm.
Whether you are affected by bankruptcy or are considering a takeover as part of a financial recovery, a competent law firm at your side is critical to success. With our experience and bargaining strength we are always on your side.
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