Gleiss Lutz has successfully advised centrotherm photovoltaics AG on its filing for insolvency and its application for entering into “protective shield proceedings” (Schutzschirmverfahren) under the new German insolvency law. This means that the company, a global leader in the provision of technology and equipment for the photovoltaics sector, can now press ahead with its restructuring in insolvency proceedings under self-administration. This is probably the largest and most prominent case to date that makes use of the new restructuring options provided by the German Act for the Further Facilitation of the Reorganisation of Companies (ESUG), which came into force on 1 March 2012.
The instrument of insolvency with “protective shield proceedings” makes it possible for companies having a viable business to be restructured under self-administration and under the supervision of a custodian (Sachwalter). Preparations for the restructuring by way of an insolvency plan, can be carried out during the three-month protection phase.
In recent weeks, Gleiss Lutz has advised centrotherm on the planned restructuring, on the alternatives of restructuring outside insolvency proceedings and – making use of the new opportunities offered by the ESUG – on financing issues, discussions with creditors and the preparations for the insolvency and “protective shield” applications.
The Gleiss Lutz team advising centrotherm consists of: Dr. Andreas Spahlinger (lead, partner, restructuring, Stuttgart), Dr. Burkhard Jäkel (partner, financing), Dr. Hoimar von Ditfurth (partner, capital markets), Dr. Matthias Müller (restructuring, all Frankfurt), Dr. Matthias Tresselt and Dr. Marcus Geißler (both restructuring, Stuttgart).
centrotherm photovoltaics AG is listed in the TecDAX and has approximately 1400 employees. Gleiss Lutz previously advised the company on its IPO in 2007 and on a subsequent capital increase, and regularly assists it with transactions.
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