Lawyer and insolvency administrator Markus Ritterrath of BRRS Rechtsanwälte has been advising creditors in the insolvency application proceedings of bc connect GmbH (AG Chemnitz 314 IN 1922/21) since the beginning of the year.
According to the information available so far, a large number of injured parties appear to be affected by the proceedings, some of them with considerable sums of money.
Legal assessment crucial for creditors
“The legal issues in the proceedings are manifold. The contractual structure of bc connect GmbH and its legal assessment are important for the creditor’s position in the insolvency proceedings. Claims can also arise from the circumstances in which the contract was concluded,” explains Ritterrath. bc connect GmbH had raised subordinated loans with very high and short-term promises of returns. On October 22, 2021, the German Federal Financial Supervisory Authority (“BaFin”) published a warning regarding bc connect GmbH on its website. It stated that the contracts offered by bc connect GmbH justified the assumption that the company was conducting unauthorized banking business or providing financial services.
BaFin intervened
In this context, BaFin clarified that bc connect GmbH does not have a license to conduct banking business or provide financial services in accordance with Section 37 (4) of the German Banking Act (KWG). By decision dated November 25, 2021, BaFin then ordered bc connect GmbH to cease the