25 March 2020
German lawmakers suspend obligation to file for insolvency
HOW HELPFUL IS THE ASSISTANCE IN CASE OF TIGHT LIQUIDITY DUE TO THE CORONA CRISIS?
Relief for companies facing financial difficulties and for investors during the coronavirus crisis. On 25 March 2020, the Bundestag decided on far-reaching measures to avoid an acute wave of insolvencies:
- Until at least 30 September 2020, companies will not have to file for insolvency if they become insolvent as a result of the coronavirus crisis.
- The legislator also relieves the management of these companies of concerns regarding personal liability for failure to file for insolvency in time.
- At the same time, investors and business partners are protected for the duration of the crisis against the risk of having their financial support contested later.
Find out more about this unusual emergency legislation.
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