12.3.5 The financial state of pre-insolvency

For the purpose of justifying the use of pre-insolvency proceedings, pre-insolvency can be defined as the financial situation in which the debtor is possibly still able to meet its current obligations as they fall due, but where it is expected that this will no longer be the case at some point in the future and the onset of insolvency, determined on a cash-flow basis, is inevitable, i.e. a realistic prospect of averting insolvency is no longer present. The debtor has no interest in postponing the inevitable. All those involved have an interest in an intervention at the earliest possible moment so that no unnecessary damage is done and as much value as possible is preserved.