Meaning
Insolvent estate laws in Germany permit owners of specific physical assets held by a bankrupt entity to claim those assets back rather than participating in the general distribution of funds. A product brand owner utilizes the right of aussonderungsrecht to reclaim injection molds or manufacturing equipment located at an insolvent molder’s factory. This action ensures that the assets are not sold to satisfy the insolvent molder’s creditors.
It separates the physical asset from the debtor’s balance sheet, allowing for the direct extraction of proprietary tooling.
Third-party Title
Proof of ownership is the sole basis for asserting this claim. Because the asset belongs to a third party, it is not part of the insolvent estate’s assets. The owner of the mold must present clear purchase contracts, invoices, and serial numbers showing they paid for and own the tooling.
Mold Recovery
Insolvency administrators must release the assets to the rightful owner once ownership is verified. When claiming aussonderungsrecht, the brand owner can demand immediate custody of the mold. This prevents production interruptions because the tooling can be moved to an alternative molder quickly.
Insolvency Procedure
Disputes occur if the insolvent molder has a valid counter-claim, such as an unpaid invoice for mold modification. Under these conditions, the administrator may refuse release until outstanding charges are settled. If the mold has been sold, the claimant can seek the proceeds under related legal rules.
