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Bundestag suspends bankruptcy rules again

2020-12-17T17:34:41.936Z


Pandemic-ridden companies do not have to file for bankruptcy in January: the Bundestag has postponed the obligation to file for another month. But then it gets serious.


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Clothing stores are particularly suffering from the corona pandemic

Photo: Boris Roessler / DPA

Companies hard hit by the corona pandemic will be able to avoid filing for bankruptcy again in January.

The Bundestag decided on Thursday with the votes of the Union and the SPD.

The obligation to apply for troubled companies is to be suspended for a further month.

This is to prevent companies from going bankrupt just because the state aid is only paid out in January.

The extension therefore only applies to companies that applied for so-called November aid in the context of the corona pandemic in November or December or would have been entitled to do so.

The Federal Ministry of Economics had admitted that the aid will only flow in full in the next year.

Fear of delaying bankruptcy

»Companies that are simply over-indebted but not insolvent should therefore be given more time until the end of the year to exhaust all restructuring and refinancing options.

Because these companies have the prospect of permanent restructuring, "said Federal Justice Minister Christine Lambrecht (SPD).

Conversely, in order to maintain confidence in the economic cycle, companies that are acutely insolvent after the expiry of the previous regulation at the end of December should therefore be obliged to file for bankruptcy again, said Lambrecht.

For companies that got into financial difficulties due to the corona pandemic, this obligation was suspended in spring - initially until September, then until the end of December.

Now this exemption applies at least to January 2021.

Contrary to expectations, the number of insolvencies did not increase significantly in the fall, although most of the ailing companies are again subject to registration.

"Many companies wrongly believe that the obligation to file a petition will generally remain suspended until the end of the year," said insolvency administrator Michael Pluta to "Manager Magazin".

Over-indebtedness is only decisive in two percent of all cases.

Bankruptcies have been dragging on for months, Pluta warned.

Many companies have "actually been bankrupt for months, they have worked illegally."

Comprehensive reform of bankruptcy law

The Bundestag decided on the extension together with a comprehensive reform of the bankruptcy law.

Financially troubled companies no longer need the consent of all creditors in order to reorganize themselves without bankruptcy proceedings.

In future, they only have to convince a majority of the creditors of their own restructuring plan.

"We also want to help companies that have got into economic distress due to the corona pandemic, although they still have a convincing business model," said Justice Minister Christine Lambrecht (SPD).

The originally envisaged option of allowing the companies concerned to withdraw from current contracts in the event of such a pre-insolvency reorganization was however deleted from the draft law due to legal concerns.

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caw / Reuters / dpa

Source: spiegel

All business articles on 2020-12-17

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