Insolvency and liquidation at a business partner: what to do as a supplier
Suddenly the register shows “i.L.” after the company name, or an insolvency announcement appears. As a supplier you then need to know: who still pays, and who do I contact?
In short
- “i.L.” means “in Liquidation”: the company is being wound up but still exists.
- In a liquidation you lodge your claim with the liquidator. No assets may go to the shareholders before the one-year blocking period ends.
- In opened insolvency proceedings the insolvency administrator decides. You file your claim with them for the schedule of claims.
Liquidation: wound up, not gone
When the shareholders of a German GmbH resolve to dissolve it, the company is wound up. It adds “i.L.” to its name and is represented by liquidators, often the former managing directors. The liquidators must publish the dissolution in the company gazettes and call on creditors to come forward (§ 65(2) GmbHG). This usually happens in the Bundesanzeiger.
The one-year blocking period (Sperrjahr, § 73 GmbHG) starts with this call to creditors. Before it ends, assets may not be distributed to the shareholders, and even then only once debts are paid or secured. A known claim must be taken into account. Still, lodge it in writing with the liquidator, with invoice and due date.
Insolvency: who decides now
- Preliminary proceedings: After the petition, the court can appoint a preliminary insolvency administrator (§ 21 InsO). With a “strong” administrator, the debtor is subject to a general prohibition of disposal and the power of disposal passes to the administrator (§ 22(1) InsO). With the more common “weak” administrator, management stays in office but needs their consent for dispositions (§ 21(2) no. 2 InsO). For new orders, clarify who approves and who pays.
- Opened proceedings: Once proceedings are opened, only the insolvency administrator manages and disposes of the assets (§ 80 InsO). Agreements with the former management no longer help.
- Filing your claim: File your claim in writing with the administrator for the schedule of claims, stating basis, amount and evidence (§ 174 InsO). The deadline is in the opening order.
Ranking: who gets paid first
Secured creditors are better off. If your property is still with the debtor, for example goods under simple retention of title, you can demand it back (segregation, § 47 InsO). If you are secured by transfer of title or extended retention of title, you are paid first from the proceeds of the collateral (separate satisfaction, §§ 50, 51 InsO). Unsecured creditors only receive a dividend from the remaining estate in the end, often a small part of the claim.
What you can do
- After “i.L.” or an insolvency petition, deliver only against prepayment or security.
- Consider a delivery stop before more goods leave your warehouse. If in doubt, have running contracts and termination rights checked by a lawyer.
- Agree retention of title in your terms of delivery so you can reclaim goods if needed.
- Note the deadlines from the opening order and file claims completely, with evidence.
- Monitor important customers regularly so you do not miss announcements.
Check with Valifex
In checks and partner monitoring, Valifex shows insolvency announcements and the liquidation status from the commercial register. Partner monitoring is available from Komfort, the monthly report from Premium. In the Business plan we also report relocation, change of name, change of capital and liquidation as a plain sentence. Try it free with 20 checks in 14 days.
This article is a general overview as of 3 Nov 2026. It is not legal advice and does not replace a review of the individual case by a lawyer.