Bremen: 9.11. 2020: At the suggestion of the insolvency administrator, the Bremen District Court has appointed a provisional creditors’ committee for the insolvent German Property Group (GPG), as the insolvency administrator Justus von Buchwaldt of BBL announced today. The committee consists of five members representing substantial claims (in the high three-digit million range) against GPG. Among them are legal representatives of international small and large creditors and a representative of the Federal Employment Agency
The task of a creditors’ committee is to support and control the insolvency administrator. The convened members may inspect annual reports and books, they have a say in the decisions of the insolvency administrator and in the distribution of the insolvency assets and are naturally bound by confidentiality. The provisional creditors’ committee now set up will act as a representation of the creditors’ interests until the actual creditors’ meeting in mid-December, which will then be reconfirmed by the meeting.
“We are dealing here with a highly complex case and with mostly or at least predominantly foreign investors, who are probably not yet all known to us,” explains Justus von Buchwaldt. “With the help of the provisional creditors’ committee we want to represent the interests of these aggrieved investors in the best possible way. We call upon all investors and investor representatives worldwide who have not yet made themselves known to do so as soon as possible.”
Extra website with investor information went live
Since last week, the law firm of the insolvency administrator, BBL Brockdorff & Partner, has launched its own website for the insolvent German Property Group, where current news and a question/answer list are available: https://www.gpg-inso.de/
Here investors should be able to register directly and register their claims. However, it has not yet been conclusively clarified how many different investor models there were, which naturally makes the establishment of such a procedure more difficult.
“We can understand well, if investors concerned hope for a fast clarification, but we can ask here only for much patience ,” Justus of Buchwaldt explains. “We have to deal with a disorderly and incomplete documentation, we must first understand without doubt, which real estate belongs to which company and which investor invested where. We can put the puzzle pieces together only gradually”. The insolvency administrator also asks for understanding that not every new finding can be made public in order not to endanger the protection of assets and thus the entire procedure.
On 15.10.2020, the Bremen District Court had opened insolvency proceedings against the German Property Group and appointed Justus von Buchwaldt, partner of BBL Brockdorff & Partner, as insolvency administrator.
For many years BBL Brockdorff & Partner has been one of the leading law firms in Germany with a clear focus on special situations – restructuring, reorganisation and insolvency. With approx. 200 employees and 40 lawyers, the law firm is present throughout Germany. BBL stands for the accompaniment of restructuring projects to prevent crises and for advice in the event of situations threatening the firm’s existence, as well as for the accompaniment of insolvency proceedings or insolvencies in self-administration.
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