By two decisions of April and June 2010 the Federal Court of Justice further consolidated its case law on the requirements for challenging payments made to creditors not by the debtor itself but a third party (BGH, 27 April 2010, IX ZR 122/09 and BGH, 17 June 2010, IX ZR 186/08).
The German laws on challenging third-party payments as "gratuitous benefits" become particularly relevant for bank creditors when restructuring group financings. In this situation, proposed third party payments by German members of a group should be checked as to whether they may be challenged as a gratuitous benefit.
[Read More]Posted by Mario Lindner on Wednesday 25 Aug 2010