The Limited Times

Now you can see non-English news...

Corona crisis: Cabinet extends exemptions from bankruptcy law

2020-09-02T12:39:15.977Z


The federal government wants to give corona-damaged companies some breathing space by relaxing the strict bankruptcy law. Now she sees reason to extend the regulation again.


Icon: enlarge

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.

Icon: The mirror

mik / AFP

Source: spiegel

All business articles on 2020-09-02

You may like

Trends 24h

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.