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Part 8 · Debtor-in-possession management › Section 270c

Procedure for provisional debtor-in-possession management

(1) The court may task the provisional insolvency monitor with reporting on

1.  the debtor-in-possession management plan submitted by the debtor, in particular whether it is based on recognised and recognisable facts, is consistent and appears implementable,

2.  the completeness and suitability of the financial reporting and accounting to serve as the basis for debtor-in-possession management planning, in particular for financial planning,

3.  the existence of obligations on the part of the debtor against current or former members of its bodies.

(2) The debtor is required to inform the court and the provisional insolvency monitor without delay of any essential changes which affect the debtor-in-possession planning.

(3) The court may order provisional measures in accordance with section 21 (1) and (2) sentence 1 no. 1a and nos. 3 to 5. If the court orders provisional debtor-in-possession management in accordance with section 270b (1) sentence 2, it may also order that disposals by the debtor require the consent of the provisional insolvency monitor.

(4) At the debtor’s request, the court must order that the debtor establish debts incumbent on the estate. If the authorisation is to cover obligations of which account has not been taken in the financial planning, this requires separate establishment. Section 55 (2) applies accordingly.

(5) If the debtor has filed a request for the opening of insolvency proceedings on account of imminent insolvency and requests debtor-in-possession management but the court does not regard the conditions for debtor-in-possession management as being met, the court is to inform the debtor of its reservations and give the debtor the opportunity to withdraw the request to open insolvency proceedings before the decision on such opening is given.

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