Represented a bankrupt company in challenging a financial claim

Our Dispute Resolution team successfully represented a bankrupt construction company in a dispute over the approval of a financial claim. A potential creditor approached the insolvency administrator of the company to have its claim of EUR 870,000 approved. The insolvency administrator refused to approve the claim and the dispute was referred to court.

Representing the bankrupt company, our lawyers convinced the court of the first instance that the creditor had not proved the existence of its financial claim of EUR 870,000 against the company and that a large part of this claim (liquidated damages and other penalties arising from construction contracts) could not be upheld due to an expired statute of limitations. The court of the first instance agreed with our lawyers‘ arguments and decided to not approve the financial claim of EUR 870,000.

This decision protected not only the rights of the bankrupt company but also the rights of its other creditors, as well as the public interest which exists in insolvency proceedings.