Restructuring and insolvency

Deciding on the future of a company in crisis is never easy. After the introduction of the Act on the Stabilisation and Restructuring Framework for Companies (so-called Company Stabilisation and Restructuring Act - StaRUG) on 1 January 2021, the management of a company - at least in the case of impending insolvency - is faced with the question of whether restructuring under StaRUG is possible or whether an insolvency application should be filed.

Regardless of whether it is a restructuring, whether an insolvency administrator takes over or whether the creditor side gets involved: all parties involved bear a high level of responsibility. In order to set the right course and make the necessary decisions in a well-founded manner, transparency about key figures of all kinds is needed quickly. These include, for example, return on equity, working capital, debt ratio, asset coverage ratio, liquidity ratios or inventory intensity. KPMG provides targeted and needs-based support with a team of experienced accountants or accountants specialising in insolvency accounting to update the accounting, prepare the data basis and determine the required key figures. On this basis, restructuring measures can be properly developed. Once these measures have been identified, KPMG assesses them with regard to their tax implications. Here it is particularly important to determine the extent to which a taxable profit is generated and remains tax-free as a restructuring profit. This ensures that the measures contribute to overcoming the crisis.

How we support you:

• Insolvency accounting (e.g. insolvency) and preparation of annual financial statements by certified accountants (incl. SAP accounting)
• Liquidity status, planning and controlling
• Support in the determination of claims
• Collection of documents for challenges as well as prognoses of continued existence (also in the case of extensive proceedings)
• Tax returns (income tax, trade tax, energy tax, customs)

For example in the case of

• Subordination, debt waiver or debt-to-equity swaps
• M&A activities and transferring reorganisations
• Implementation of dual purpose trusts
• Refinancing and sale & leaseback
• (International) restructurings and judicial reorganisation proceedings

• Support during tax audits
• Binding information in connection with reorganisation profits
• Legal remedies, defence in criminal tax proceedings
• Securing liquidity through deferrals, waivers and taxation of fiscal unity

Our team of tax experts with insolvency and restructuring experience is at your side. Get in touch with us.