Figures on debt or affected employees were not available because the insolvency proceedings were opened following a creditor’s application. Thomas Steiner was appointed as insolvency administrator, according to the KSV. Last year, Salamander and Delka branches were closed, and restructuring expert Rainer Schrems brought the German retailer Görtz on board, who took over the old branches. However, a lengthy legal dispute is now looming with the Germans, because the company never paid the agreed purchase price for the branches or the rent due, according to the allegation of the law firm Singer & Kessler Rechtsanwälte, which represents Delka and Salamander.
“We, the creditors of Delka/Salamander and many employees, are stunned,” said Rainer Schrems in the press release. “I have been in the restructuring business for many years, but I have never experienced anything like this.” The report and examination hearing for the bankruptcy proceedings was scheduled for November 18, and creditors can file claims until November 4, according to the creditors’ protection association.
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What happens when you claim insolvency
Insolvency Proceedings: A Comprehensive Overview
Insolvency proceedings are a legal process designed to help individuals or businesses navigate financial difficulties and find a way to recover from debt or liquidate assets. In this article, we will delve into the world of insolvency proceedings, exploring the key concepts, legal frameworks, and procedures involved.
What are Insolvency Proceedings?
Insolvency proceedings are legal actions taken when an individual or business is unable to pay their debts and is facing financial distress. The goal of insolvency proceedings is to provide a framework for debtors to restructure their debts, liquidate assets, or cease operations in an orderly manner. Insolvency proceedings can be initiated by the debtor themselves, creditors, or a court of law.
Types of Insolvency Proceedings
There are several types of insolvency proceedings, including:
- Bankruptcy: A legal process where a debtor’s assets are liquidated, and the proceeds are distributed among creditors.
- Insolvency Administration: A process where an insolvency administrator is appointed to manage the debtor’s assets and affairs.
- Restructuring: A process aimed at reorganizing a business to make it viable again.
Insolvency Law in Italy
In Italy, insolvency proceedings are governed by the Bankruptcy Law (Royal Decree No. 267 of 16 March 1942) [[3]]. The law provides for various procedures, including bankruptcy, insolvency administration, and restructuring. Italian law firms, such as Delpinte & Associati, specialize in bankruptcy law and insolvency procedures, offering expert advice to individuals and businesses navigating financial distress [[2]].
Insolvency Proceedings in Practice
A recent example of insolvency proceedings can be seen in the case of Delka and Salamander, two Austrian retailers that faced financial difficulties and were forced to initiate insolvency proceedings. The companies’ creditors were left stunned when the German retailer Görtz, which had taken over the old branches, failed to pay the agreed purchase price and rent due [[artikeldetailText]].
In this case, Thomas Steiner was appointed as insolvency administrator, and a report and examination hearing were scheduled for November 18. Creditors can file claims until November 4, according to the creditors’ protection association.
The Role of Insolvency Administrators
Insolvency administrators play a crucial role in insolvency proceedings, as they are responsible for managing the debtor’s assets and affairs. Insolvency administrators, such as Thomas Steiner in the Delka and Salamander case, must navigate complex legal and financial situations to ensure that creditors receive fair compensation and that the debtor’s assets are managed efficiently.
Conclusion
Insolvency proceedings are an essential part of the legal framework, providing a safety net for individuals and businesses facing financial difficulties. By understanding the various types of insolvency proceedings, legal frameworks, and procedures involved, individuals and businesses can better navigate financial distress and find a way to recover or liquidate assets in an orderly manner.
References
[1] Quaderni di Ristrutturazioni Aziendali. (n.d.). Nuove prospettive dell’azione revocatoria nella crisi d’impresa. Retrieved from
[2] Delpinte & Associati. (n.d.). Bankruptcy Law and Insolvency Procedures. Retrieved from
[3] LMS Lex. (n.d.). Levoluzione dell’insolvenza italiana. Retrieved from
[artikeldetailText] (n.d.). Insolvency Proceedings Opened for Delka and Salamander. Retrieved from [insert URL]
Insolvency Proceedings: A Comprehensive Overview
Insolvency proceedings are a legal process designed to help individuals or businesses navigate financial difficulties and find a way to recover from debt. In this article, we will delve into the world of insolvency proceedings, exploring what they are, how they work, and what happens when you claim insolvency.
What is an Insolvency Proceeding?
An insolvency proceeding is a legal process that is initiated when an individual or business is unable to pay its debts and needs protection from creditors. According to the UK Insolvency Act 1986, an insolvency proceeding is a proceeding pursuant to the Act, and more generally, a proceeding pursuant to a statute bearing the same name[[[1]].
Types of Insolvency Proceedings
There are several types of insolvency proceedings, including:
- Bankruptcy: A legal process where an individual or business is declared insolvent and their assets are liquidated to pay off creditors.
- Administration: A process where an administrator is appointed to manage the business and attempt to rescue it or sell it as a going concern.
- Liquidation: A process where a company’s assets are sold off to pay off creditors.
- Receivership: A process where a receiver is appointed to manage the business and collect debts on behalf of creditors.
How Insolvency Proceedings Work
The insolvency process typically begins with the filing of a petition for insolvency by the debtor or a creditor. A court-appointed trustee or administrator is then tasked with managing the process, which includes:
- Debt Collection: The trustee or administrator collects debts owed to the debtor and sells off assets to pay off creditors.
- Creditor Claims: Creditors submit claims to the trustee or administrator, which are then verified and prioritized.
- Distribution of Assets: Assets are distributed to creditors according to their priority.
What Happens When You Claim Insolvency
When you claim insolvency, you are essentially admitting that you are unable to pay your debts and need protection from creditors. The insolvency process can provide several benefits, including:
- Protection from Creditor Harassment: The insolvency process provides a legal framework that protects debtors from creditor harassment and legal action.
- Debt Relief: Insolvency proceedings can provide a fresh start by wiping out debts that cannot be paid.
- Business Rescue: In some cases, insolvency proceedings can help rescue a business by providing a temporary freeze on creditor action, allowing the business to restructure and
