What should be considered in the case of continuation forecasts
If you are financed based on a continuation forecast, you should be protected against risks of contestation in case of insolvency. However, the following minimum standards should be met:
The content of a continuation forecast includes an elaboration of the current situation, the action plan and the planning calculations. The planning accounts must be distinguished in primary forecast (short-term / medium-term financial plan) and secondary forecast (medium-term earnings planning). They have to show that the financed company is always able to pay and the profitability can be restored. It is also relevant that no calculation errors are included.
In addition, the underlying rehabilitation concept must not be manifestly unsuitable. This means that the expected improvement effects must be likely to be assumed and the restructuring measures must not interfere with the interests of the stakeholders involved (management, supervisory bodies, shareholders, employees and their representatives, credit institutions and other creditors).
In any event, the progress of the implementation of the measures and the actual effects must be constantly reviewed in order to ensure that the first-time progress report is still valid. This should be documented by means of target / actual comparisons, up-dating and deviation analyzes