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Cabinet meeting on Tuesday: "Strict over-indebtedness rules would be counterproductive at this point in time"
Photo: John Macdougall / dpa
The exceptions for insolvency law in the corona crisis are to be extended.
The federal cabinet decided on Wednesday.
The obligation to file for bankruptcy should remain suspended until the end of the year - if a company is insolvent or over-indebted as a result of the corona crisis.
This regulation was introduced in March, initially through September, to prevent a wave of bankruptcies in the pandemic.
Usually, an application for bankruptcy must be filed no later than three weeks after the occurrence of a reason for bankruptcy.
The Bundestag still has to approve the extension.
"The return to a strict application of the over-indebtedness rules would be counterproductive at the moment," said Justice Minister Christine Lambrecht (SPD) in Berlin.
For companies that are only over-indebted but not insolvent have the prospect of permanent restructuring.
This could save jobs.
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mik / AFP