Deloitte Legal Webcast "Legal Update #21/2024"

The number of corporate insolvencies is increasing. The reasons for this lie both in the COVID-19 pandemic and its aftermath, including the delay effect caused by legislative measures, as well as in the challenging economic environment intensified by the war against Ukraine with rising energy costs, but not least also in significantly higher financing costs.

Economic difficulties have far-reaching effects on long-term contractual relationships. Particularly in the area of long-term commercial lease agreements, insolvencies - on the tenant or landlord side - can have far-reaching economic and other consequences for the other party. This makes a careful examination of the possible effects of insolvency just as essential as the examination of available security instruments.

In our Deloitte Legal Update Webcast on December 4, 2024, we will first explain the effects of insolvency on the tenant or landlord side on the commercial lease. We will then outline possible strategies that parties to a commercial lease can pursue if the lease becomes unstable due to the insolvency of one of the parties. In this context, we will address both the situation of a tenant who is confronted with an insolvent landlord and the situation of the landlord in tenant insolvency. We will devote particular attention to the possibilities of securing the rights of use under the tenancy agreement in rem by means of so-called tenant easements. We will illustrate for which case constellations tenant easements come into question and appear to make sense, how the right to use the rental property can also be secured by a tenant easement in the event of insolvency and which pitfalls need to be avoided during implementation.

The focal points of our webcast include:

• Overview of the insolvency proceedings
• Presentation of the effects of tenant/landlord insolvency on the lease: (Under what conditions) Does the lease continue? What termination options are there? What options do the parties have?
• What effects does insolvency have on rental security deposits, building cost subsidies, rental security deposits, claims for damages and the landlord's lien?
• Explanation of the tenant easement - basic rules and pitfalls
• Notes on the use of the vdp pattern

Following the webcast, there will be an opportunity for in-depth discussion with our experts in real estate law, attorneys Rebecca Gulden and Carina Fricke.

Register today and take the opportunity to send us your questions in advance so that we can take them into account during our webcast.

We look forward to your participation.

Webcast in German language – please feel free to contact our experts for explanations in English language. 

For organizational questions, please contact

Sabine Sander-Schweden

Tel: +49 403 7853 831 
E-Mail: ssander-schweden@deloitte.de