Eigenverwaltung (debtor in possession)

Eigenverwaltung is the German equivalent of the US „debtor in possession”. Instead of an insolvency administrator, a supervisor (Sachwalter) is appointed to oversee management without replacing it. Management retains control over corporate assets.

Requires a debtor petition and a court order. Prerequisites: a credible restructuring perspective, no circumstances disadvantageous to creditors, and a good management reputation. The SanInsFoG reform (2021) made the proceeding more attractive — now the standard mode for corporates and larger mid-market companies.

For buyers, Eigenverwaltung is the most interesting deal environment: direct negotiation with management, shorter timelines, more creative deal structures possible. Supervisor consent, and where applicable creditors' committee consent, is required.