Protective shield

To plan.

Time is short. Events come thick and fast. The situation is becoming critical. Is it possible to make the right decisions in a situation like this? It’s difficult. It is for times like these, when insolvency is imminent, that the protective shield was introduced. The protective shield, which is embedded in self-administration proceedings, protects companies against enforcement measures by creditors. This buys the company time. However, an insolvency plan in preparation for restructuring of the company must be submitted within three months. In the protective shield procedure, management retain the power of disposal over the company’s assets in the same way as during self-administration. Another important aspect of this procedure is that the company itself can propose a supervisor to the court.

Schultze & Braun helps companies to develop an insolvency plan aimed at restructuring their business and to agree the plan with creditors and the court.

Advantages of the protective shield procedure

  • Provides protection against compulsory enforcement
  • Company retains power of disposal (as during traditional self-administration)
  • Management has the right to propose a supervisor
  • Easier to plan and more predictable due to this right of proposal
  • Overindebtedness and imminent illiquidity not grounds for refusal

More about the protective shield procedure

Insolvency plan

Why is an insolvency plan needed?

An insolvency plan – optional in standard self-administration proceedings, mandatory in protective shield proceedings – is drawn up by the various parties involved in the restructuring process. It must be agreed by the creditors and the court. This must be done within three months. Schultze & Braun advises and supports clients in the planning, preparation and agreement of insolvency plans including all necessary financial plans and attachments. The insolvency plan represents a compromise between the debtor company and its creditors. It outlines the specific steps to be taken to keep the company in operation and to restructure it. 


Contacts self-administration - protective shield

Volker Böhm
+49 911 60079-0

Achim Frank
+49 7841 708-274

Guido Koch
+49 7841 708-260

Detlef Specovius
+49 7841 708-251