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Status: 2024-05-02

What is the purpose of so-called qualified subordination agreements for shareholder loans to a German subsidiary?

A qualified subordination agreement is a contract under which the claim of the creditor (e.g. shareholder) (“loan repayment claim”) is subordinated to all other creditor claims in the event of the insolvency of the debtor (=German subsidiary).   This means that the loan repayment claim does not have to be recognized as a liability at […]

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