Why might I need a German Lawyer?

If your circumstances are such that you are confident that claims made in the UK will recover your loss then you're in a reasonable position and may not need to pursue legal action in Germany. On the other hand, if you are not in this position then you may need to consider appointing a German Lawyer to represent your interests in recovering whatever is realised in Germany for the benefit of creditors.

The GPG Creditors Committee have undertaken extensive research regarding the capability and expertise of German Lawyers to represent us personally. We have instructed Attorney Peter Mattil to act for us. You are of course free to decide on who, if anyone, you appoint or you could try and follow the German liquidation process yourself. We have asked Peter to provide a summary of the liquidation process, any further claims we may have, and how he can help us through this maze. The following is his summary:-

German Insolvency Process

We understand that more than 200 Dolphin companies exist and will subsequently enter into insolvency procedures. Currently there is only one insolvency procedure open: AS German Property Group GmbH (formerly Dolphin Capital Trust GmbH). The many special purpose vehicle companies, such as Dolphin Capital 80 KG, will follow in due course. As this process unfolds we have to observe the fate of the entire group and recommend to you measures to take where necessary or appropriate.

Step 1

We will register and prove your claim to the liquidator of GPG GmbH. It is possible that the entire Dolphin Group will result in one insolvency procedure but this is not certain yet. At the moment the court has appointed two different liquidators. These are GOERG (Preliminary Administrator of DC 80 and others) and BBL. If we face more than one insolvency procedure we will have to register the claim again. As circumstances evolve we will deal with any changes or amendments on your behalf throughout the process of the group’s insolvency.

We charge only one fee. The fee is the minimum legal fee that German law requires for attorneys activities in an insolvency procedure. In our experience insolvency procedures take many years and will be difficult for you to pursue and understand. Included in our fee is our assistance during the coming years, our advice and recommend legal steps, when required. Our services are comprehensive and attorney Peter Mattil as one of the most experienced lawyers in Germany for insolvency / investment cases.

In cases of hardship we are prepared to allow this cost to be spread over several years. Please contact us directly in this regard.

What will happen next?

Following the court appointment, the liquidator will have to gain control over the entire Dolphin Group by opening the procedures for each individual company in the Group and some that are linked to the Group. The liquidator (or liquidators) will investigate the movement of all the estimated 1 bn invested money, trace ownership and security, and evaluate and sell the properties in Germany. This could take years and involve great efforts as you can imagine. Some of the properties are valuable, others only scrap. Our service is to explain, inform, represent and guide you through this process, providing answers to the many questions that may arise. We will correspond with you directly, if you are our client.

Once your claim is registered and accepted we will enter into step 2.

Step 2

You can, hopefully, expect a dividend from the insolvency procedure but we cannot estimate this now. We cannot predict whether the tracing of money will be successful or the realisable values for the sale of properties. It is likely that you will suffer a significant loss and you will seek compensation, which will be pursued by us parallel to the insolvency procedures.

We will identify potential claims against any responsible persons. This will include the Directors of the Dolphin Group, the security trustees, notaries and any other parties liable for your losses. We will obtain more information on this in the future, from the liquidators, prosecution and others. Once we have examined all documents and evidence, we will revert to you and propose further actions. Again, we can only do this for our clients.

We will look for a litigation strategy that is cost effective regarding attorney‘s and court fees. We do not have a “class action“ in Germany comparable to the UK but there are similar methods to pursue claims in a collective way. We will submit a strategy to you at a later date.

How to contact Peter and fees

Peter can be contacted via his firms website: https://www.mattil.de/en/contact

The fee structure can be viewed here.

Liquidation process flow diagram

The below schematic summarises the above steps:-