Berlin—Global law firm Dentons has advised Paracelsus-Kliniken Deutschland GmbH & Co. KGaA in the preparation and submission of its insolvency plan - which includes restructuring measures, the transition to the investor as well as the satisfaction of the creditors - within the framework of self-administration. The insolvency plan was unanimously approved by all groups of creditors on May 23, 2018. In April 2018, the plan was also approved by the Osnabrück District Court. The restructuring team was headed by Andreas Ziegenhagen, Daniel F. Fritz and Dr. Reinhard Wichels in coordination with the new owner designate, Porterhouse Group AG.

The acceptance of the creditors means the proceedings can most like be terminated as early as the end of June - only six months after the insolvency application. The group's creditors can also expect an exceptionally high initial target ratio of 42 percent and a further significant payout to cover the vast majority of their receivables.

With around 40 facilities in 22 locations, the Paracelsus Group is one of the largest private hospital companies in Germany. Every year, more than 100,000 inpatients are treated by 5,200 employees nationwide.

A Dentons team led by restructuring partners Andreas Ziegenhagen, Daniel F. Fritz and Dirk Schoene advised the clinics comprehensively in drawing up the insolvency plan. Ziegenhagen and Fritz had previously been appointed by management consultancy WMC together with hospital redevelopment expert Reinhard Wichels as general agent of the Paracelsus Group in the self-administration proceedings. Since the application was submitted in December 2017, Dentons has supported the local management in all legal issues in connection with the self-administration procedure.

Andreas Ziegenhagen, Head of the Restructuring, Insolvency and Bankruptcy practice in both Europe and Germany, commented: "With the adoption of the insolvency plan, the Paracelsus clinics have overcome a decisive hurdle on their way to restructuring. We are pleased that this solution offers both the best possible satisfaction of creditors and a positive long-term outlook for the clinic group and its employees."

Advisors to Paracelsus-Kliniken:

Dentons (Frankfurt am Main/ Berlin):

RIB: Andreas Ziegenhagen (Partner, lead and general authorized representative), Daniel F. Fritz (Partner, lead and general authorized representative), Dirk Schoene (Partner), Dr. Michael Seppelt (Counsel), Dr. Detlef Spranger (Counsel), Dr. Benjamin Kurzberg (Counsel), Judith Specht (Senior Associate), Michael Valentin (Senior Associate), Dr. Jakob Pickartz (Senior Associate), Dr. Jan Seelinger (Senior Associate);

Corporate /M&A: Dr. Christof Kautzsch (Partner), Dr. Christian Schefold (Of Counsel, Compliance), Victoria Prange (Associate, Healthcare);

Employment: Dr. Markus Diepold (Partner), Matthias Stelzer (Counsel);

Real Estate: Sabine Wieduwilt (Partner), Dr. Julia Zeitz-Krüger (Counsel), Dr. Andrej Latinovic (Counsel), Laura Appell (Senior Associate), Samira Bouzakri (Associate), Ceren Türkekul (Associate);

Competition and Antitrust: Dr. Josef Hainz (Counsel), Anna Ritte (Associate);

Dentons GmbH: Andreas Braunsdorf (Director).

About Dentons

Redefining possibilities. Together, everywhere. For more information visit dentons.com