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Germany – Debt-to-equity-swaps: a reorganisation and takeover instrument in Germany
by Charlotte Schmitt, LL.M, GSK Stockmann + Kollegen
The term of the debt-equity-swap does not define a certain procedure, but covers various types of measures, which all aim at creating equity from debt. Through the conversion of existing liabilities into equity initially a short-term reorganisation of a company which is in danger of insolvency is made possible. The over-indebtedness on the balance sheet is removed (temporarily) and the equity base is improved. In addition, an improvement in the liquidity is achieved hereby.
AIFM Directive approved by the European Parliment - Outlook and Preperation
Managers of so-called alternitive investment funds will in future be supervised and there will be an extensive catalogue of obligations for selling and marketing alternitive investment fund.
'Phoenix' and 'Cuckoo' Businesses: Liability Risks Related to Business Transfers
A recent Federal Court of Justice ruling highlights the risks of taking over and carrying on an existing business using a business name which is identical or similar to that used previously. Any party partaking in an asset deal involving the transfer of German business operations must be aware of several pitfalls in order to avoid liability.