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specific knowledge that the debtor was insolvent. Such evidence might be difficult toestablish. The Court will use circumstantial evidence in order to assess whether thecreditor was aware of the debtor’s insolvency.If the distressed company is already in the “observation period” of the insolvencyproceeding, the juge-commissaire decides whether to authorize actions exceedingthe routine management of the company, including entering into a settlementagreement. 65If it would potentially have a significant impact on the outcome of theproceeding, the juge-commissaire may only authorize a settlement after consultingwith the public prosecutor.If the distressed company is already in the liquidation process, the liquidateurjudiciaire may, with the authorization of the juge-commissaire, settle claims ofcreditors. 66 2. Retention of title to propertya. GermanyRetention of title provisions are generally treated as being fully enforceable ininsolvency proceedings. 67However, such rights may be invalidated by insolvencychallenge rights (see Paragraph III. A. 7., supra).In Germany, there are only a few requirements for a valid retention of title, and aretention of title is a standard condition in practically all German terms of delivery.The retention of title implies that the seller can demand return of the goods, even inthe event of the buyer’s insolvency, if the purchase price has not been paid.65 Code de commerce [C. com.] art. L. 622-7 II.66 Code de commerce [C. com.] art. L. 642-24.67 Insolvenzordnung [InsO] [Insolvency Statute], Oct. 5, 1994 [Bundesgesetzblatt] (BGBl.] 2866, aslast amended by Art. 6 G of the Act of August 31, 2013 [BGBl.] 3533, §§ 129 ff.51