Insolvency administrator
What is an insolvency administrator?
Upon the opening of insolvency proceedings, the insolvency court must appoint an insolvency administrator of its own accord. The insolvency administrator must be a person of good character, reliable and with business acumen. In the case of debtors operating a business, the insolvency administrator must possess sufficient specialist knowledge of commercial law or business administration, or be an experienced figure in the business world. A further essential requirement is that the insolvency administrator must be independent of both debtors and creditors. A legal entity, such as a limited liability company (GmbH) established specifically for the purpose of insolvency administration, may also be appointed as an insolvency administrator. However, it must inform the court of the person who will represent it in the conduct of the insolvency administration. The insolvency administrator is the ‘hub’ of the insolvency proceedings. The success of the proceedings depends largely on their abilities. The insolvency administrator is responsible for the practical conduct of the insolvency proceedings whilst safeguarding the collective interests of the parties involved. He must take possession of and administer the assets forming part of the estate and make all decisions concerning the estate in place of the debtor.
The insolvency court is responsible for supervising the work of the insolvency administrator. In bankruptcy proceedings and restructuring proceedings without self-administration, the insolvency administrator is referred to as the ‘liquidator’ for the sake of clarity; in reorganisation proceedings with self-administration, they are referred to as the ‘reorganisation administrator’.
Learn more about our insolvency and restructuring division. Please feel free to contact us for further information.