Corporate Restructuring

The number of corporate insolvencies in Germany is decreasing since 2005: Hamburg, March 6, 2008 – as the number of bankruptcies declined in 2007 significantly as a result of the economic recovery. Back on still around 28,500 insolvencies thus calculates the Euler Hermes Kreditversicherungs-AG and forecast a stagnation on the same high level for 2008. Because not only the economy is paramount for the weal and woe of a company. While ailing companies already give the field during the first signs of a weaker economic momentum, increasing the level of insolvent companies in cyclical relaxation. From this pool of high-quality companies of insolvency, the return recruited 1 Fund for Germany”its target companies for a sustainable renovation of the insolvency proceedings. A team of experienced remediation Manager solves the problem and selected 15 companies over a period of two years from the approximately 57,000 potential candidates through a two-stage test procedure. The chance of the fund company discovered and profitably fed back into the market, corresponds to a value in the range of ten thousandths of a percent, or in other words because the Fund needed only a fraction of the crisis-prone companies 0,2631 per thousand, highly profitable to work.

The high forecast 17% p. a. yield interest on shareholder loans, a stake in corporate earnings, and the proceeds of the resale is from the favourable purchase price. For the composition of the investment portfolio, the strong economy thus benefits the Fund, since the time of mass bankruptcies over and already the wheat from the chaff will be disconnected. Current surveys of Creditreform says that a good third of the bankruptcies (35.4% in 2007) of establishments provided, already more than ten years on the market Act. This rate is increasing and 2006 was 35.0%. Also in the top sales size class no decrease of the cases can be observed: both 2007 and 2006 had 60 companies with more than 50 Million Euro turnover log on insolvency.

Companies that generate five million euros and more revenue per year, accounted for 2007, 4.2% 4.1% of insolvency events in 2006. The University of Mannheim surveyed 125 insolvency administrator who edit 19,000 bankruptcies as the main reasons for the failure of the company. “” “In the first place (79%), a missing controlling stands according to the respondents” followed by financing gaps “(76%), a lack of customer management” (64%) and an authoritarian leadership “(57%). For more information, or phone 040 / 64 22 606-0.