Parent Companies on the Hook as Bavaria’s Transfer-Company Enrollment Reaches 2,156
15.06.2026 - 00:13:23 | boerse-global.de
German executives can be held personally liable for unpaid taxes if they continue to operate an insolvent company without sufficient funds, the Higher Administrative Court of Münster ruled back in November 2019. That legal reality is gaining fresh relevance as the number of workers placed into so-called transfer companies — temporary employment pools used during restructurings — has more than tripled in Bavaria over two years.
Official figures show that 680 employees were registered in such schemes in September 2023. By September 2025, that number had climbed to 2,156. The sharp increase is driven largely by the industrial sector, where transfer short-time work has become a go-to tool for workforce reductions.
A case in point: automotive supplier Mahle at its Neustadt an der Donau site. During a restructuring, roughly 250 of 350 employees moved into a transfer company. Workers typically receive transfer short-time allowance for up to 12 months, worth 60 to 67 percent of their last net salary. While the program boosts the odds of finding a new job, it offers no guarantee of an equivalent position or similar pay.
Who foots the bill? The answer often lies in corporate group structures. Control and profit transfer agreements obligate parent companies to cover the losses of their subsidiaries — including the cost of social plans and transfer measures. Several major firms have recently confirmed or signed such pacts.
On February 13, 2026, Branicks Group AG approved an agreement with DIC Real Estate Investments. At Vonovia SE, a contract with Deutsche Wohnen SE got the green light back in January 2025, though shareholders filed a challenge at the district court in Dortmund.
When a rescue fails, insolvency plan proceedings offer an alternative. The creditshelf AG used this route in spring 2026: during calendar week 17, all of its shares were transferred to a new investor, and creditors received a 5.2 percent quota.
Squeeze-out procedures also remain relevant, forcing out minority shareholders for cash compensation. The valuation of synergies and integration costs often triggers years of litigation. At BUWOG AG, a committee recently recommended a significant increase to the original payout — with scenarios ranging between roughly €32 and €36 per share.
