2005-05-04 Phoenix Kapitaldienst GmbH

Assets worth approx. 210 million Euros secured – in any event investors can expect an allocation payment from the insolvency proceedings

There is visible progress from the endeavours of the provisional insolvency administrator Frank Schmitt (Schultze & Braun) to secure assets which will then be made available to the creditors. In the meantime it has been possible to recover cash in banks amounting to around 210 million Euros. In the near future receipt of approx. another 10 million is expected. Payments worth 15 million Euros which were made by Phoenix in the critical period, i.e. a few days before the application for insolvency was made, have been successfully recalled.

The provisional insolvency administrator is assuming that within the course of a payment flow analysis and comprehensive document research, further claims will be uncovered which could be worth in the region of tens to hundreds of millions.

As this is a matter of„criminal insolvency“, the Department „Forensic Services“ of Schultze & Braun has been instructed with the case, a team of ten with extensive experience in ascertaining facts and circumstances. On the one hand, these instructions include analysing the payment flows of the debtor so that the system of fraud can be traced in this respect. On the other hand, further analyses of the operational sequences and commercial documentation of the debtor will be carried out which will also allow a more in-depth insight into the fraudulent transactions and will serve as a basis for pursuing further claims against the bankrupt's estate.

Contrary to any other reports in the media, investors can not expect a payout from the insolvency estate in the short-term! At the moment the insolvency proceedings are still at the application stage. This means that the provisional insolvency administrator's top priority currently is to secure the assets. Payments to creditors in the current stage of opening proceedings are not allowed.But even after opening the insolvency proceedings, advance payouts will not be possible as this is conditional on all claims being definitively ascertained. As there will be more than 30,000 creditors involved in these proceedings, it will not be possible to verify the claims quickly. A time period of at least one to two years is to be expected for the investigation procedure, final completion of the proceedings is expected to take another five years in total.

In the insolvency proceedings, the participating investors can expect pro rata satisfaction of their claims, whereby to determine the amount to be paid out, the damages already paid out to the investor by the Compensatory Fund of Securities Trading Companies will be subtracted from the registered claim.

For further information please contact our spokesperson:
Mail: Presse@schubra.de, Phone: +49 (0) 7841/708-0

Additional information:
  • 2011-02-16 BGH ruling: No right of separation for Phoenix investors
  • 2007-04-25 Majority of creditors agree on insolvency plan – one creditor objects
  • 2006-02-09 Insolvency plan procedure aimed for
  • 2005-03-16 Involuntary insolvency proceedings opened - 30,000 investors affected
Schultze & Braun Rechtsanwaltsgesellschaft für Insolvenzverwaltung mbH,
http://www.schubra.de, Email: mail@schubra.de