Translate:

In response to the COVID-10 pandemic, the German legislator enacted a new law to suspend the mandatory obligations to file for insolvency proceedings and to mitigate liability risks for managing directors and creditors. According to the "Act to Mitigate the Consequences of the COVID-19 Pandemic in Civil, Insolvency and Criminal Procedural Law", the obligation to file for insolvency proceedings is suspended on a temporary basis for companies facing an insolvency due to the COVID-19 pandemic.

The new law also mitigates the risks of managing directors as well as creditors and other business partners in connection with financial distress. The new law was enacted on Friday, 27 March 2020, with the regulations regarding insolvencies having retroactive effect as of 1 March 2020.

Explore More Insight