Gallus Immobilien: Investors in shock – preliminary insolvency proceedings opened!

Gallus Immobilien: Investors in shock – preliminary insolvency proceedings opened!

There is currently worrying news in Cologne regarding Gallus Immobilien Concepts GmbH. On June 4, 2025, the Heidelberg District Court opened preliminary insolvency proceedings over the company's assets. Dr. Johannes Hancke was appointed as provisional insolvency administrator. It remains to be seen whether there will be final insolvency proceedings, as there are numerous claims and claims for damages and the company's assets are likely to be low, as anwalt.de reports.

Affected investors and subordinated lenders should now seek legal advice in order to lodge their claims as part of the insolvency proceedings. The situation is particularly explosive because BaFin expressed suspicion on July 2, 2025 that Gallus Immobilien had offered participation certificates from AMAGVIK AG without a required sales prospectus. Offering securities to the public without an approved prospectus is not only unlawful, but could also result in criminal penalties.

Risks for investors

Especially in times of low interest rates, many investors are looking for attractive investment opportunities. These often take the form of subordinated loans, which have to take second place to other creditors in the event of insolvency. While this type of financing can seem tempting, it carries significant risks for investors. In its article about subordinated loans, BaFin pointed out the particularly high risk of total loss.

The subordination of these loans means that if the company goes bankrupt, investors will only be served after all other creditors have been satisfied. Investors should be aware that they generally have no influence on the company's business and are often denied insight into business development. This makes investing risky and should only be considered if you are prepared to potentially lose all of your invested capital.

Legal situation and investor rights

With the entry into force of the Small Investor Protection Act in 2015, new regulations for such forms of investment were introduced. These include, among other things, the obligation to provide a prospectus for providers of subordinated loans. Such a prospectus must be approved by BaFin, but offers no guarantee for the seriousness of the provider or the economic viability of the product. If there is no prospectus, investors should be particularly vigilant and check the contractual conditions carefully, as haufe.de also states.

According to the experts, investors who have agreed to an exchange or conversion into participation certificates should try to reverse these decisions. There are also legal options for claiming damages, as investment advisors are obliged to inform their clients about all risks and special features.

The best thing left for affected investors to do is to seek legal advice as quickly as possible in order to assert possible claims for damages resulting from incorrect advice. After all, it is not only the company that is responsible, but also the consultants who should help their clients make the right decisions.