obligation to file for insolvency

By Frank Grell, Dr. Jörn Kowalewski, Dr. Ulrich Klockenbrink

The Federal Ministry of Justice and Consumer Protection (BMJV) now implements, with great commitment and unprecedented speed, what it has generally announced on 16 March 2020 (see also The four pillar protective governmental shield for Germany):

  • The suspension of the obligation to file for insolvency
  • The limitation of liability risks for managing directors in an insolvency situation

These measures shall be adopted within less than a week and a half. The aim is to help directors manage the disruptive effects of the COVID-19 pandemic on the liquidity situation of many companies and avert further negative business and economic consequences against the background of the strict German insolvency filing and liability regime in insolvency situations. The BMJV and restructuring experts (including Latham lawyers), have collaborated closely to design these provisions.