22.09.: Company restructuring– Update!

Corona-induced wave of insolvencies expected

The Corona crisis is causing unbearable financial losses for many companies, and despite the “protective shield” that has been built up as a result, many have already reached the point of insolvency.

Nevertheless, the number of insolvency applications has so far been surprisingly low: the reason for this is the law introduced in March to mitigate the consequences of the COVID 19 pandemic in civil, insolvency and criminal proceedings.

The latter has suspended the obligation to file for insolvency until 30 September 2020.

Have insolvency plan proceedings checked!

One way to overcome the crisis is the insolvency plan procedure as a strategy for corporate restructuring.

Within this framework, the parties concerned can make individual arrangements compared to the regular procedure under the Insolvency Act in order to possibly secure their business. Thus, in addition to the reorganisation or the transferred reorganisation, the liquidation of the company or a mixed form of both can be aimed for. Restructuring under company law or a possible transfer of shares to the creditor are also possible with the implementation of an insolvency plan procedure and can help through the crisis.

UPDATE – Partially extended suspension of the obligation to file for insolvency

Following the suspension of the obligation to file for insolvency until 30 September 2020 as a result of the Corona crisis, many expected a considerable wave of insolvencies in autumn.

The suspension has now been partially extended even further. For the insolvency reason of over-indebtedness, the obligation to file for insolvency is now suspended until 31 December 2020.

You can get more information here!