Compensation
What is a compensation?
The legal basis for the judicial settlement was the Settlement Regulations (AO), which ceased to apply at the end of 30 June 2010. The settlement procedure was replaced by the self-administered restructuring proceedings. If the debtor had sought restructuring from the outset, the settlement procedure was available to them, although the minimum distribution ratio was 40 percent, which was arguably the main reason for the low number of settlement proceedings. The stated aim of the IRÄG 2010 is to facilitate restructuring on a wider scale and to promote the timely commencement of insolvency proceedings. The Settlement Regulations continue to apply to settlement proceedings commenced before 1 July 2010.
Learn more about our insolvency and restructuring division. Please feel free to contact us for further information.