When a company faces payment default, provisional insolvency administration is typically ordered before the actual proceedings begin. This serves to protect the debtor’s assets from adverse changes. The period of provisional insolvency is also used to find new investors or buyers before the actual proceedings commence. However, this does not always succeed.
Solutions for insolvent startups
Things went well for Noyes Technologies. The startup for automated micro-warehousing entered provisional insolvency administration in November 2023. In February, a rescue solution came in the form of an acquisition by the Austrian Knapp corporate group. For this purpose, Knapp Nano Warehousing Beteiligungs GmbH, newly established on February 1, took over Noyes Technologies’ business operations. All 19 employees in Munich were retained. The insolvency proceedings for Noyes Technologies GmbH were opened on the same date, February 1. Attorney Rolf G. Pohlmann from the Munich law firm Pohlmann Hofmann was appointed as the insolvency administrator.
The insolvency of edtech Heytimi also found a positive resolution. The startup for online tutoring entered provisional insolvency administration in early December, led by attorney Marc-André Kuhne from the Dingolfing law firm DKR Kuhne Dr. Raith Rechtsanwälte. At the end of December, Heytimi was acquired by Berlin-based edtech Cleverly – although the two companies did not communicate this until February. In addition to the brand and customers, the Berlin-based company also secured some of Munich’s employees and tutors. The brand will also initially continue to exist as “Heytimi by Cleverly.” The opening of Heytimi’s insolvency proceedings was on January 3, 2024.
And the insolvency of Smart4Diagnostics also found a positive outcome. Shortly before Christmas, the medtech, which aims to digitalize the blood draw process, had to file for provisional insolvency. In March, the Munich-based company announced a successful investor solution: Venture Targeter 3 AB, a subsidiary of Swedish venture capital firm Katalysen Ventures AB, acquired the business operations effective March 1 and also took over the entire workforce. Behind Katalysen Ventures is a group of investors from Sweden, the United Kingdom, and the USA. With the acquisition, insolvency proceedings were also opened for Smart4Diagnostics GmbH. Attorney Dr. Elske Fehl-Weileder served as the insolvency administrator. She works at the Munich office of the Achern law firm Schultze & Braun Rechtsanwaltsgesellschaft für Insolvenzverwaltung.
Newly opened insolvency proceedings
Things went less fortunately for Cesonia. Founded in 2018 with support from LMU EC and SCE, the startup brought a collaboration solution in the field of product development to market. In November 2023, the company entered provisional insolvency administration. In February of this year, the proceedings were opened. Dr. Max Liebig from the Munich law firm Liebig Insolvenzverwaltung Restrukturierung took over the insolvency administration. Some may remember her from the Kuchentratsch insolvency last year. However, no solution could ultimately be found for Cesonia.
There was also no solution for Grundriss in Lebensgröße. The startup offers property developers the projection of floor plans in their original size onto their hall floor. Customers then furnish their future home with the help of movable walls and cardboard furniture. With this concept, the startup once convinced Carsten Maschmeyer and Judith Williams in the German version of the Dragon’s Den. In mid-January, insolvency proceedings were opened against Grundriss in Lebensgröße, and just a week later, insufficient assets were determined. Attorney Dr. Ulf Pechartscheck from Dr. Beck & Partner Rechtsanwälte is the insolvency administrator.
There are also updates from the insolvency proceedings of Xpay. The credit card startup, founded in 2016, had to file for provisional insolvency in August for several parts of the corporate group: Xpay Holding AG, Xpay Solutions GmbH, and Xpay Development GmbH. The Xpay Card Services GmbH, which operates as an e-money agent at the center of operations, is not affected by the insolvency. In November, insufficient assets were determined for Xpay Holding and insolvency proceedings were opened. In March, proceedings were also opened for Xpay Solutions GmbH and Xpay Development GmbH. In both cases, attorney Dr. jur. Matthias Hofmann from the Munich law firm Pohlmann Hofmann was appointed.
New cases of provisional insolvency in the Munich scene
In the first quarter of the year, there were also two new cases of provisional insolvency. In mid-February, Laqa had to enter provisional insolvency administration. The startup has developed a digital solution for care and healthcare facilities to record and process drinking quantities and intervals for care recipients. A smart drinking cup is designed to track whether users are drinking enough and remind them if necessary. In this way, the startup aims to help prevent dehydration in older adults and care recipients. However, Laqa itself now needs help. Attorney Dr. Benedikt de Bruyn from the law firm GT GreenbergTaurig was appointed as provisional insolvency administrator.
Additionally, Samdock entered provisional insolvency administration at the end of January. The startup offers a cloud-based software-as-a-service solution that enables small and medium-sized enterprises to digitalize and automate business processes in sales, marketing, and customer service in a seamless system. In early 2020, the startup was able to secure a seven-figure sum, but now the money ran out. Attorney Thomas Klöckner from the law firm Lecon is the provisional insolvency administrator. Just in early April – already in the second quarter – the insolvency proceedings were then opened.
