Chapter Three – Territorial Insolvency Proceedings Relating to Domestic Assets
Section 354 – Requirements for Territorial Insolvency Proceedings
(1) If a German court does not have jurisdiction to commence insolvency proceedings in respect of all the debtor’s assets but the debtor has an establishment or other assets on domestic territory, on application by a creditor separate insolvency proceedings may be brought in respect of the debtor’s domestic assets (territorial insolvency proceedings).
(2) If the debtor does not have an establishment on domestic territory, the application of a creditor for commencement of territorial insolvency proceedings is admissible only if this creditor has a particular interest in the commencement of proceedings, in particular if it is likely to be placed in a substantially worse position in foreign proceedings than in domestic proceedings. The particular interest must be demonstrated by the applicant to the satisfaction of the court.
(3) The insolvency court within whose district the establishment is situated or, in the absence of an establishment, assets of the debtor are situated has exclusive jurisdiction for the proceedings. Section 3 (2) applies with the necessary modifications.