Representation of Investors in Insolvency Proceedings
The Cologne District Court opened insolvency proceedings against Deutsches Edelmetallhaus GmbH on December 20, 2024, due to insolvency and over-indebtedness (Case No.: 70c IN 158/24). As a result, the funds of investors who invested in precious metals through the company are now at risk. Investors and other creditors can register their claims with the insolvency administrator by February 12, 2025.
Registering claims with the insolvency administrator is a crucial first step for investors to protect themselves from potential financial losses. It is essential to register claims on time, as only registered claims can be considered in the insolvency proceedings. The business law firm MTR Legal Rechtsanwälte, which has extensive experience in capital markets law, consistently represents the interests of investors.
Insolvency Application Filed on August 9, 2024
Deutsches Edelmetallhaus GmbH, headquartered in Cologne, is a subsidiary of heygold SE, which focuses, among other things, on the distribution of physical precious metals through various subsidiaries. As stated in an ad hoc announcement by the parent company on August 9, 2024, Deutsches Edelmetallhaus GmbH filed for the opening of preliminary insolvency proceedings on the same day. This step followed a tax audit that uncovered discrepancies with potentially significant financial implications, leaving the company unable to meet its financial obligations, as noted in the announcement by heygold SE.
Since these discrepancies apparently could not be resolved, the regular insolvency proceedings have now been opened at the Cologne District Court. Deutsches Edelmetallhaus GmbH had offered investors the opportunity to invest in gold, silver, and other precious metals. Following the insolvency, investors face the risk of significant financial losses. However, they now have the option to register their claims in the insolvency proceedings.
Registering Claims with the Insolvency Administrator
When registering their claims, investors must specify the type of claim, how it originated, and any security rights they assert. This process can be complex for investors, as it may also require determining whether they have segregation claims, which would exclude certain assets from the insolvency estate.
MTR Legal Rechtsanwälte supports investors of Deutsches Edelmetallhaus GmbH in properly registering their claims for the insolvency schedule to ensure their rights are preserved. Additionally, the experienced attorneys at MTR Legal can represent investors at creditor meetings, advocating for their interests and pursuing potential strategies for the reorganization or liquidation of the company.
Potential Claims for Damages
The size of the insolvency estate and the potential insolvency quota for investors are currently unknown. However, it is often the case that the insolvency estate is insufficient to fully satisfy all creditor claims. Therefore, investors can take the next step of assessing whether they may have claims for damages.
For instance, it may be necessary to evaluate whether liability claims can be made against company executives and management. Specifically, it should be investigated what tax discrepancies were uncovered during the audit and whether these could lead to liability claims against the management.
Furthermore, potential claims for damages against third parties should also be reviewed. Possible claims may include those against investment advisors or intermediaries, who should have informed investors about the risks associated with their investment, including the possibility of a total loss. Additionally, investment advisors or intermediaries should have assessed the plausibility of the investment model. If they failed in their duty to inform and advise, they may be liable for damages to the investors.
Representation of Investor Interests
MTR Legal Rechtsanwälte has extensive experience in capital markets law and protecting the interests of investors. The experienced attorneys represent investors of Deutsches Edelmetallhaus GmbH throughout the insolvency proceedings, from the proper registration of claims to the review and enforcement of claims for damages.
