Over-indebted companies: Minister of justice wants to suspend duty to the bankruptcy filing more

the Federal Minister of justice, Christine Lambrecht (SPD) wants to be liberated by the Corona-crisis, over-indebted companies by March 2021 from the obligation

Over-indebted companies: Minister of justice wants to suspend duty to the bankruptcy filing more

the Federal Minister of justice, Christine Lambrecht (SPD) wants to be liberated by the Corona-crisis, over-indebted companies by March 2021 from the obligation to file for insolvency. Thus, the pandemic would have caused an over-leveraged company the time, "in many industries, a resurgence in economic activity or to restore the state offers of help," said Lambrecht on Saturday in Berlin. "We want to prevent mass bankruptcies and preserve jobs."

"The current infection to happen: The Covid-19 pandemic is far from over," said the Minister. Many companies are pandemic due to a financial crisis and acute-care at risk of insolvency.

the suspension of The insolvency request obligation should apply only to undertakings, the insolvent, but not bankrupt, stressed the Minister of justice. In the case of already insolvent company, the crisis is no longer quite so far advanced that they are able to cover their ongoing costs and liabilities. "The risk here is that they also bring other, healthy companies in a wrong position, for example, if you can't pay the bills for supplies."

FDP: extension will help companies

The Deputy Union Chairman Thorsten Frei (CDU), was open to allow the suspension of the obligation to apply for Insolvency no longer apply. However, an extension up to the new year, from the point of view of his group was too long, he said the "Bild"-Zeitung: "Up to the end of the year I think is a reasonable amount of time. So, we ensure that companies that have a Chance of recovery, can recover a further three months.“

Updated Date: 08 August 2020, 07:20

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