theater Executives Sentenced for Delayed Bankruptcy Filing, Reckless Spending
Kรถnig-Heinrich-Platz, Germany – โTwo former managing directors of the theater operating company on the Marientor haveโค been โsentenced by a districtโ court โfor delaying the filing of bankruptcy proceedings despite the theater’s dire financial โขsituation. The court found both men failed inโ their legal โduty to act โsooner,contributing to the company’s ultimate collapse.
The โขfirst managing director, a 44-year-old from Lindlar, oversaw the theaterโข in 2018 and, despite mounting financial difficulties,โ authorized a contract โto purchase a โproperty in Hesse โinโ Octoberโ of that year. By the end ofโข the year, the company held a mere โฌ40,000 in liquid funds, and reliedโ on unsubstantiated financing promises.Experts say insolvency proceedings should haveโข been initiated at this point.
His successor,a 57-year-old from Duisburg,took the helm in May 2019 andโ filed for bankruptcy โคin Octoberโค of the same year. Though, before filing, he authorized a furtherโ expenditure of โฌ354,000 on advertising for the musical “Wallace,” โคeven as theโฃ theater’s financial prospects were demonstrably hopeless.
The โ57-year-old admitted in court to lacking experience as aโ managing director, stating he had placed complete trust in the advice of an โฃauditor and tax consultant responsible forโฃ the theater’s financial management.
While the lay judge acknowledged the men’sโค apparent desire to salvage the company, theyโฃ emphasized that as managing directors, they bore ultimate responsibility for adhering to legal regulations.
The 44-year-old received a 14-month probationary sentence โfor delaying bankruptcy. The 57-year-old was sentenced to 16 months probation, factoring in charges of both bankruptcy delay and โfraud. โThe โcourt considered the defendants’ โขclean records,their confessions,the timeโ elapsed since the offensesโค (six years),and the significant personalโ and financial consequences โtheyโ have already โฃfaced.