German Property Group insolvent – What can Investors do now?

german property group insolvenz insolvent

For investors in the German Property Group (GPG for short, formerly Dolphin Trust GmbH), the news was certainly a shock. The GmbH and other parts of the group of companies filed for bankruptcy on July 23, 2020.

German Property Group insolvent – what can investors do now?

For investors in the German Property Group (GPG for short, formerly Dolphin Trust GmbH), the news was certainly a shock. The GmbH and other parts of the group of companies filed for bankruptcy on July 23, 2020.

In the insolvency announcements you can find the following message from the 22 July 2020:

531 IN 1/20: In the insolvency application procedure for the assets of AS German Property Group GmbH, Herdentorswallstr. 93, 28195 Bremen, formerly German Property Group GmbH, In den Kolkwiesen 68, 30851 Langenhagen (AG Bremen, HRB 35791 HB), represented by: Falk Holtmann, (Managing Director), is on July 23, 2020 at 9:30 a.m. provisional administration of the debtor’s assets has been ordered. Disposals of the debtor are only effective with the consent of the preliminary insolvency administrator.

Source: Insolvency announcements AG Bremen

Many media reports that it could have been a pyramid scheme or the biggest real estate fraud of all time. The prosecutor is investigating. Results are not available yet. It is unclear whether the allegations are true and only time will tell.

For a long time, the German Property Group had paid individual investors neither interest nor the sums invested, despite the due date.

Circulars to investors followed in which extensive restructuring measures were announced. It was, among other things, asked for a moratorium.

Those familiar with the gray capital market had already suspected at this point that the company was likely to find itself in major liquidity difficulties, and that bankruptcy might be imminent.

Renaming to “AS German Property Group GmbH” and relocation

Shortly before filing for bankruptcy, both the company name and the seat were changed or relocated. The company’s headquarters are no longer in Langenhagen near Hanover, but in Bremen. In addition, the two letters AS were added to the company name, so that the entrepreneur is now called “AS German Property Group GmbH”. Around the same time there was also a change in the management.

However, this is likely to be the usual game of confusion and hide-and-seek in a failed investment company, which is apparently intended to make prosecution by creditors more difficult, at least temporarily.

Registration of Claims or entry in the list of Creditors

At this point in time, the insolvency proceedings are only provisionally ordered. The preliminary insolvency administrator is currently examining whether this will be officially opened. This also depends, among other things, on whether there is sufficient mass to carry out the process. For this reason, it is not foreseeable whether and to what extent creditors or investors of the German Property Group or the former Dolphin Trust can expect their investment to be repaid.

According to the current state of knowledge, at least some real estate or land should still be in the business assets. More details will only be known when the insolvency administrator has submitted his insolvency report to GPG.

However, we advise creditors to be entered on the list of creditors now. We would be happy to do this for you.

We will also inform you as soon as the bankruptcy proceedings have officially opened. Then the claims can also be officially registered for the table, whereby we are also happy to support them.

Are you an Investor / Creditor and need advice?