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PASCHEN – founding member of “ServiCon Crisis Task Force”

Legal experts of the ServiCon Law Network initiate a special consulting solution for a corporate crisis. PASCHEN renders short notice assistance to concerned members of trade cooperatives in southern and eastern Germany. The current factual and legal situation will be reviewed for corporate restructuring and insolvency issues and the member will be given a recommendation of action for stabilization and continued of operation.

Orders are received and fulfilled by many suppliers, outstanding and shortfall payments accumulate. Equity capital is often insufficient. Consequences are a shortage of liquidity, impending illiquidity and insolvency. Due to the financial crisis and the economic downturn number of insolvencies is soaring not only as a result of multinational corporations but also through medium-sized businesses and trade & service cooperatives. Seventeen thousand (+14%) applications for bankruptcy were registered in Germany during the first 6 months of 2009. Insolvency is on a sharp rise. About 35.000 insolvencies are forecasted for 2009 and the projection for 2010, with 40.000 insolvencies, is even worse.

Trade & service cooperatives face the challenge of evaluating the entrepreneurial activity and financial situation of their members. ServiCon offers an exclusively new consulting solution – the “ServiCon Crisis Task Force” for members in a corporate crisis. Legal experts will review current factual and legal situation will be reviewed for corporate restructuring and insolvency issues and the member will be given a recommendation of action for stabilization and continued of operation.

The trade & service cooperative will gather consolidated findings and strategic recommendations from their member who is at risk of becoming insolvent. The likelihood of hedging credit increases. All of our legal experts have a profound knowledge and special expertise in consulting aggrieved creditors and companies at risk of going into insolvency. Some also possess their own forced administration department.