Debtor warrant

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Debtor warrant the BRABAG 1963

A debtor warrant is for a waiver of the creditor a signal output written promise of the insolvent debtor , first enacted in improvement of his financial circumstances debt to repay all or part of.

The debtor warrant often serves as an instrument for prolongation , which is mainly used for restructuring measures for stock corporations that have got into financial difficulties . In these cases it is a participation certificate that promises creditors any later payments. In addition, debtor warrants are used when selling securities if the value of the paper cannot be correctly assessed at the time the contract is concluded.

use

The institution of the debtor warrant was developed in the US business community. From there she came to Germany, among other places. In the securities industry, debtor warrants are usually used in settlement proceedings in which shareholders or bondholders (creditors) initially waive part of their assets or claims. They contain the debtor's securitized obligation as soon as his financial circumstances allow him to pay the agreed remaining debt. The debtor warrant gives the obligee the advantage that if the financial situation of the debtor improves, he will receive additional payments afterwards.

principle

The condition subsequent within a debt relief is called a debtor warrant. It aims to ensure that the debtor is generally released from his debts to a specific creditor; nevertheless, these debts should be revived if the debtor's economic situation should improve (hence “debtor warrant”). This can be measured, for example, in an improvement in equity or in profits generated again.

procedure

The debtor warrant is usually taken out at the request of the debtor, whose company is to overcome a crisis by issuing the debtor (s). The consent is given by the creditor (s) who are destroyed by the decree. Debt relief with a debtor warrant is chosen if there are reasonable prospects that the company concerned will recover. If this cannot be assumed, the more radical form of unconditional debt relief is chosen.

Hope values

Between 1952 and 1975 in former West Germany and West Berlin, debtor warranties were partly issued by corporations and credit institutions that owned confiscated assets in the former Soviet occupation zone or in the formerly German eastern territories . If shareholders and bondholders received less than 10 percent of the value of their Reichsmark- denominated bonds after the currency conversion and the subsequent securities adjustment, the remaining liability was in some cases evidenced by debtor warrants.

These notes represented so-called values ​​of hope and promised a repair in the event that the affected companies get their property back or are compensated. Well-known companies that issued such debtor warrants included Braunkohle-Petrol AG in Berlin, Junkers Flugzeug- und Motorenwerke in Dessau, Henschel & Sohn in Kassel and Heinkel in Rostock.

See also

Subordination

literature

  • Peter Knief: profit from restructuring and debtor warrant. Deutscher Sparkassenverlag , 1987.
  • Anja Herzberg: declaration of subordination, conditional waiver of claims and debtor warrants. GRIN Verlag , 2007.
  • Hans-Georg Glasemann, Ingo Korsch: Hope values . Unregulated claims from securities issues before 1945 and their compensation after reunification. Springer Science + Business Media , 2013.

Web links

Individual evidence

  1. ↑ Definitions of the Gabler Bank Encyclopedia , accessed on May 24, 2019
  2. ↑ Hans-Georg Glasemann, Ingo Korsch: Hope values . Unregulated claims from securities issues before 1945 and their compensation after reunification. Springer-Verlag, 2013, p. 80.
  3. ↑ Hans-Georg Glasemann, Ingo Korsch: Hope values . Unregulated claims from securities issues before 1945 and their compensation after reunification. Springer-Verlag, 2013, p. 82.
  4. ↑ Securities in the Der Spiegel storage facility from January 14, 1991, accessed on May 24, 2019