Insolvency Plan

An insolvency plan – also known as a reorganization plan under §§ 217 ff. InsO – is the central tool for quickly and controlled restructuring of a company during insolvency proceedings. The plan is created by the debtor or insolvency administrator and presented for voting in the creditors' meeting. Core components include individual arrangements for debt settlement, such as quota payments, deferrals, subordinations, or a debt-to-equity swap where creditors become shareholders. Upon confirmation by the insolvency court, the insolvency plan replaces the regular insolvency proceedings and provides immediate legal certainty. For the commercial registry, capital measures, amendments to the articles of association, or changes in corporate form are often required, making the restructuring effective in corporate law as well. A successful insolvency plan increases the continuation prognosis, minimizes creditors' claim losses, and preserves jobs. Companies in financial distress benefit from this flexible restructuring option as they can quickly overcome insolvency or over-indebtedness. Search terms like 'create insolvency plan', 'reorganization plan under InsO', 'debt settlement through quotas', 'insolvency court confirmation', and 'restructuring without regular proceedings' are therefore of particular relevance for all affected parties and advisors.