Restructuring proceedings

Restructuring proceedings make it possible for insolvent companies to be reorganised and subsequently continue trading.

In order to be eligible for restructuring proceedings, companies must be insolvent, at risk of insolvency or in excessive debt.

In the case of restructuring proceedings with the debtor in possession the court will appoint an administrator. They are responsible for supervising the debtor, who retains the ability to use the company's assets and perform legal transactions.

In the case of estructuring proceedings with the debtor not in possession, a liquidator will be appointed and the debtor may no longer make use of their assets.

Applications for the institution of insolvency proceedings and the adoption of a restructuring plan can only be submitted by the debtor. They may be submitted in writing or entered in the records orally before court. When submitting an application, a restructuring plan must also be provided. This restructuring plan must be approved by the majority of creditors.

The application must be filed by:

• the partner with unlimited liability in the case of:
  • general partnerships (OG) and
  • imited partnerships (KG)
• the managing director in the case of:
  • private limited companies (GmbH)
• the management board in the case of:
  • public limited liability companies (AG)

The restructuring proceedings are instituted by the court, and their institution publicly announced in the online insolvency register. Once the court has provided final confirmation of the restructuring plan, the insolvency proceedings are deemed to be closed.

Deadlines

Companies must submit an application for institution of insolvency proceedings no later than 60 days after becoming insolvent or excessively indebted.

Relevant body

The Regional Court (→ BMJ)^{German text}, in Vienna the Commercial Court Vienna (→ BMJ)^{German text}, in Graz the Regional Court for Civil Matters Graz (→ BMJ)^{German text}

Further links

Insolvency register (→ BMJ)^{German text}

Legal basis

Sections 140 to 179 of the Insolvenzordnung (IO)