Insolvency drama: D.I.I. Investors before total loss - what to do now!

Insolvency drama: D.I.I. Investors before total loss - what to do now!

Esslingen am Neckar, Deutschland - The concerns of the investors are increasing: On October 9, 2024, the bankruptcy of the D.I.I. 14 GmbH & Co. Investment KG closed at the Frankfurt District Court (Az. 810 in 598/24 D) opened. This was due to insolvency and over -indebtedness. Investors who have invested in these funds must now fear that they will lose their capital. The fund was probably launched between 2021 and 2022 and is part of the D.I.I. Group, which has been on the high risks for private investors since 2020, the high risks.

The focus here is on real estate facilities, with the D.I.I.I. Group manages residential properties worth four billion euros in over 50 locations in Germany. But now the other face of these investments is evident. Closed funds are known for being illiquid. An exit before the end of the fund period is often difficult and can be associated with considerable losses. Investors of the D.I.I. Real estate funds are understandably concerned because, as limited partners or silent shareholders, they are involved in the entrepreneurial risk, which significantly increases the risk of total loss, such as [Anwal.de] (https://www.anwalt.de/rechtstipps/d-i--14-gmbh-und-co--investment-kg-insolvenz-und-drohender-Total Loss-Was-Jetzt-Tun-koennen-246775.html) and akh-h.de.

The legal situation for investors

investors should definitely think about their next steps. "Select all documents for investing" is an urgent recommendation from experts. These include emission prospectus, consulting documentation as well as correspondence and account statements. It can be advisable not to give a premature explanations and avoid any documents that could worsen the legal position. Early contact with a law firm specializing in banking and capital market law can help maximize the chances of repayments, as claims for damages can exist in cases of incorrect advice.

The D.I.I. Group has come into a deep crisis with other subsidiaries. Before Easter 2024, bankruptcy applications have already been for the D.I.I.I. Deutsche Invest Immobilien AG and their subsidiaries. Overall, numerous procedures were opened, among other things, the D.I.I.I. Facility Services GmbH and D.I.I. Property Management GmbH. Investors of the public AIF residential property Germany 1 and 2 run the risk of losing their invested capital, which increases general uncertainty.

risks of closed funds

closed funds are known for their high risks. A total loss cannot be ruled out, and investors often have a significant liability risk. The promise of returns can appear tempting, but reality often looks different. Another point: closed funds do not offer high flexibility. The shares are often returned after long periods of 15 to 30 years. The premature sale on the second market is also combined as difficult and often associated with high price ranges, as cdr-legal.de describes in detail.

The co -owners often only have subordinated claims in the event of bankruptcy, which increases the risk of the individual. It is therefore essential for investors to be clear about the structure of their investments and to make well -founded decisions. The situation around the D.I.I. Group urgently shows how important a detailed analysis of the risks is before an investment.