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The Federal Ministry of justice: Further Changes in the reorganisation and insolvency planned right

The Federal Ministry of justice
Further Changes in the reorganisation and insolvency planned right

Wants firms to facilitate restructuring without insolvency proceedings: Christine Lambrecht. Photo: Bernd von Jutrczenka/dpa

© dpa-infocom GmbH

To a broke shaft in accordance with the economy to prevent collapse in the course of the Corona-crisis has eased, the coalition of the requirements for insolvency filings of the company. Now, a new legal framework to follow.

A company in financial difficulties will receive additional opportunities for restructuring outside of insolvency proceedings.

A draft of the Federal Minister of justice, Christine Lambrecht (SPD) provides for further development of restructuring and insolvency law. This includes the introduction of a legal framework for restructuring, with the bankruptcies averted can be. Of these, in particular, the company could benefit from, and be advised as a result of the Corona pandemic in trouble, the Ministry announced in Berlin. The law should take effect at the beginning of 2021 in force.

The company, which could show your creditors a realistic perspective, to be able to enforce their restructuring concept, even outside of bankruptcy proceedings, said Lambrecht. To do this, it would be sufficient to convince a majority of the creditors thereof.

“The new opportunities, in particular, companies will be able to benefit, suffering the economic consequences of the Corona pandemic, although they continue to have a compelling business model,” she said. The new legal framework allows companies “to terminate onerous contracts, if the other party to the Contract adaptation or termination agrees, for the avoidance of insolvency is required”.

For the of the pandemic, affected companies will be created, according to the Ministry for further relief. These are subject to from the 1. January 2021, although again, the obligation to apply for Insolvency due to over-Indebtedness. However, the over-indebtedness test should be placed in a more relaxed scale based on the take on the current forecast uncertainties into account.

In addition, Refurbishment of the existing Law is to be further developed. It should be ensured that the waiver of appointment of an insolvency administrator in the “self-administration” procedure “is, in principle, only good and solidly prepared projects reserved”.

Most recently was eased due to the tense situation of many companies in the insolvency law. Companies that have over-indebted in the Corona-crisis, must face up to the end of the year, no application for insolvency. You must, however, be more able to pay. Companies that are over-indebted as a result of the effects of the Corona pandemic, also on the 31. To help December 2020, is expected to enter the proposed law in effect at that time.

In the past, companies see good prospects for the continuation of business operations can apply to the court to insolvency proceedings in self-administration. The Executive Committee remains in office is, however, a so-called property, plant, and Walter to the side.

Matthew Velter
Matthew Velterhttps://etrendystock.com/
With 5 years of experience as an editor, Matthew has been a crucial part of eTrendy Stock since its inception. He looks after the editing of news content published on eTrendy Stock. Apart from investing his time in editing, he also provides well-researched news articles for the U.S. niche. Mathew studied at University of central Florida.

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