clause on contract termination in the event of the initiation of insolvency proceedings against the buyer. The Supreme Court … of Germany concluded that such clauses are invalid, as they deprive the insolvency receiver of the right to choose … clause. The prohibition of the bankruptcy clause is based on two key arguments. First, the possibility for the insolvency …

that the reduction in priority discourages the attempts to reorganize the company outside the formal insolvency (bankruptcy …