Duty to the bankruptcy petition will continue to be exposed to
In the Corona-crisis, over-indebted firms get air: a further easing of bankruptcy law, the Federal government wants to prevent a bankruptcy. The chamber of Commerce and industry fears that the scheme could go to the expense of other companies.
Given the strained situation of many companies in the Corona-crisis, the Bundestag has eased the insolvency law.
After a decision by Thursday evening will be suspended in cases of over-Indebtedness, the request for obligation until the end of the year. This is intended to give distressed firms will continue to air, in order to apply for state assistance and redevelopment efforts.
The additional suspension applies to the company, the over-indebted due to the pandemic, but non-payment are unable. In March, the Insolvency had been exposed to the requirement to submit until the end of September – for cases in which an insolvency or over-Indebtedness of companies on the effects of the Corona pandemic is based. The coalition had decided at the end of August, an extension for cases of over-Indebtedness. Normally, a bankruptcy must be made ground of application at the latest three weeks after the occurrence of an Insolvency.
The German chambers of industry and Commerce (DIHK), the prolonged suspension of the requirement to submit a critical. “It is obvious that from the point of view just in the medium term, non-viable enterprises, the extension of the deadline for the offence of over-Indebtedness has advantages. These companies are listening and we understand that,” said DIHK chief General counsel, Stephan Wernicke, the German press Agency. The extension of the deadline, but I will go often to the expense of creditors and other companies at risk. This is economically questionable, said Wernicke.
It is crucial, however, as companies remained liquid. “We need to do this in the short term, a pre-insolvency legal proceedings, which are viable companies with a rescue perspective and not with the still existing Stigma of bankruptcy is fraught,” said DIHK chief General counsel. A part of the bankruptcy-prone company can be restored with timely measures.
The measure had also been previously criticism. So the head of the “economic wise men”, Lars, field said, in the first Phase of the crisis, it was right, the application’s duty to suspend, because a lot of companies had with sustainable business models, liquidity problems. “The acute Phase is over. Therefore, it makes little sense, the obligation to apply for Insolvency any longer to suspend and not viable for the company to survive hauling through.”
While the Insolvency requirement for pandemic-related over-indebted companies now have until the end of the year more exposed to insolvent companies from 1. October sign up again for bankruptcy. The Chairman of the professional Association of insolvency administrators in Germany (VID), Christoph Niering, said that the rule in question is from the insolvency law point of view “is the right step in the normalization of economic life”. “As hard as it is, in individual cases, for the affected businesses and workers, so important is this decision for the stabilisation of the overall economy.”