Companies that got into economic hardship after the flood disaster should be exempted from the obligation to file for bankruptcy for a longer period of time. The Bundestag still has to agree.
The companies damaged by the July flood are to be exempted from the obligation to file for bankruptcy longer than previously planned.
The parliamentary groups of the Union and the SPD have agreed on this, as the SPD legal expert Johannes Fechner confirmed to the German Press Agency in Berlin on Tuesday. The “Handelsblatt” had previously reported on it.
The obligation to file for insolvency in the event of impending insolvency will therefore be suspended until the end of January 2022 and not – as originally intended by the Federal Cabinet – only until the end of October. In addition, the possibility is given to extend this period to the end of April without further approval from Parliament. “We want to open up an alternative to going to the bankruptcy court for companies that have suffered severe damage,” explained Fechner.
The corresponding regulation still has to be decided by the Bundestag. The first reading is scheduled for the special session on Wednesday next week. It is unclear whether the law will be passed on the same day or not until another plenary session on September 7th.
Companies that are insolvent usually have to file for insolvency within three weeks – companies that are over-indebted after six weeks at the latest. With retroactive effect from July 10th, this obligation is now to be suspended in order to prevent the bankruptcy of actually healthy companies. However, the prerequisite for this special regulation is that the insolvency or over-indebtedness can actually be attributed to the heavy rainfalls and the floods of the previous month.
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
