Creditors' Meeting

The creditors' meeting is the central decision-making body in insolvency proceedings. The insolvency court invites all insolvency creditors – such as suppliers, banks, social security institutions, and other claim holders – to this meeting a few weeks after the proceedings commence. The first meeting, also known as the reporting meeting, is publicly announced via the insolvency notice and simultaneously appears as a notice of the commencement of proceedings in the commercial registry, allowing interested parties to quickly ascertain the company's status. In the creditors' meeting, insolvency administrators or trustees provide detailed information about the debtor's financial situation, causes of the crisis, and restructuring options. Subsequently, the attending creditors democratically decide on pivotal points: election of a creditors' committee, continuation or closure of the business, liquidation of assets, approval of settlement or insolvency plan proceedings. Each vote is based on the amount of the registered claim, giving major creditors more influence. Minutes and resolutions are reported to the commercial registry, even though the meeting itself is not recorded there. For companies, investors, or advisors, the creditors' meeting provides reliable information on the further development of the insolvency proceedings and simultaneously opens up opportunities to influence the outcome.