2008-12-19 Schultze & Braun

Germany’s crunch to hit even harder in 2009 warn top insolvency lawyers

The German commercial landscape is set to deteriorate unevenly in 2009 after a precarious 2008. Volker Beissenhirtz, Head of the Berlin Office of Schultze & Braun, Germany’s leading insolvency and restructuring law firm, looks at the year ahead:

 “Germany’s lacklustre domestic consumption and the slump in the Euro’s value will only worsen matters. Aside from the union issues directly resulting from attempts to reduce staff size, companies’ finances will come under strain from demands to refill leaking order inflow. Those in the manufacturing sector must also bear the burden of greater uncertainty in energy prices and recession in the large economies.

“Order books will continue to look particularly bare in Germany’s automotive industry as the rise in energy prices generally and the overall consumer reluctance to spend money due to the recession and the common fear about the future. The shares of many automotive sector businesses seem to be a bargain right now, but may well have further to slide, particularly as insufficient investment in the more eco-friendly end of the market becomes apparent.

“Suppliers to these sectors aside, smaller German firms may well survive the coming months best. This is because larger firms tend to take longer to make decisions and an organised preparation and implementation of restructuring concepts require, typically, a couple of months and often millions of Euros for large firms.  Currently both time and money are scarce.

“The really big change we have seen at the moment is the credit crunch limiting the reorganisation options of companies.  The lack of finance means there are very limited options for refinancing compared to the past, while the speed of the onset of the problems means that companies now have days or weeks to find a way to survive whereas they previously often had months.”

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

Additional information:
  • 2016-07-13 Dr Stefan Schmittmann to assist Schultze & Braun as of counsel
  • 2012-10-10 New statistic from Schultze & Braun: Insolvency plan under-used
  • 2009-02-23 Appointment of Frank Tschentscher
  • 2008-12-05 Comments on the outlook for investment in distressed debt in 2009
  • 2008-10-23 Warning for hedge funds with investments in Germany
  • 2008-07-25 Schultze & Braun wins landmark case against the Ordre des Avocats de Strasbourg
  • 2008-07-02 Law hits distressed debt investors
  • 2008-04-12 German credit crunch warning
  • 2008-03-03 German ministers seek to inflict pesticide on financial “locusts”
  • 2007-09-28 Leading german insolvency law firm launches in London
  • 2006-09-21 First book on restructuring with the insolvency plan under German law
  • 2005-03-21 New head of Schultze & Braun’s international team
Schultze & Braun LLP
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