X ist verpflichtet Y zu tun, falls... ueber das Vermoegen von X des Insolvenzverfahren eroeffnet oder die Eroeffnung mangels Masse abgelehnt wird

OK, so X has to do Y if insolvency proceedings are instigated over his assets or if ????

I guess it means: if things have got to the stage that insolvency proceedings would normally be started, but because X has so few assets the courts don't bother.

Is that the right meaning? Can anyone put it in a shorter, more formal form?

Cheers!