Even though an insolvency administrator is already involved, this is still a so-called pre-restructuring phase. In this phase, which lasts six months and can be extended by three months if necessary, Human Horizons must work with the insolvency administrators to protect assets, manage operations prudently and attract strategic investors. This period is seen as a final attempt to avoid complete bankruptcy.
The process is comparable to insolvency proceedings in self-administration as it is done under German law: The management remains active and in charge, but the insolvency administrator must approve important decisions. The idea is to prevent money from being extracted from the company before regular insolvency proceedings are initiated….
