Group insolvency (§§ 3a–3e InsO)

When several companies within a group become insolvent at the same time, each company in principle opens its own proceeding at its own registered seat — potentially before different courts and administrators. §§ 3a–3e InsO, introduced with the 2018 group insolvency law reform, create an optional shared group venue: on application, all proceedings can be bundled at the seat of one group company (usually the parent or the economically most significant subsidiary) and assigned to a single competent court.

In addition, § 269d InsO allows the appointment of a coordination administrator and a coordination procedure, in which a coordinated group plan is drawn up for all group companies — not legally binding on the individual administrators, but a key tool for avoiding conflicting realisation decisions, such as several administrators competing for the same customers or assets.

For buyers, group insolvency matters when a target company is part of an insolvent corporate group: central functions (IT, procurement, HR) often run through a shared group entity and need separate contractual cover at signing (transitional service agreements). It's also worth checking whether a group venue has been established — that signals a coordinated, generally more professional realisation process compared with isolated individual proceedings.