German Insolvency Law - The managing directors' obligation to file for insolvency

I. Introduction

Due to the current corona crisis and the therewith associated tense economic situation, many managing directors (Geschäftsführer) are faced with the question of a possible, punitive obligation to file for insolvency as well as other duties that must be observed in the context of a crisis.

The following provides an overview of the obligation to file for insolvency, payment prohibitions in a crisis as well as the facilitations introduced under the German COVID-19 legislation.

Filed under:
Germany, Insolvency & Restructuring, Litigation, Mayer Brown, Coronavirus
Authors:
Dr. Marco Wilhelm , Tina Hoffmann
Location:
Germany
Firm:
Mayer Brown
German insolvency law is geared towards liquidation of the debtor – insolvency plan procedures are only applied in exceptional cases

German Insolvency Law

Filed under:
Germany, Insolvency & Restructuring, Mayer Brown, Legal personality, Shareholder, Debtor, Board of directors, Market liquidity, Limited liability company, Debt, Liability (financial accounting), Liquidation, Balance sheet, Joint-stock company, Pro rata
Authors:
Dr. Marco Wilhelm , Kevin Philipp Lach , Dr. Nicolas Rößler, LL.M.
Location:
Germany
Firm:
Mayer Brown
Law to mitigate the consequences of the COVID-19 pandemic in civil, insolvency and criminal procedure law passed by the German Parliament

With unanimous vote, the German Parliament passed the Law to mitigate the consequences of the COVID-19 pandemic in civil, criminal and insolvency law. This new law brings with it several (temporary) changes of law all of which aim at mitigating the consequences of the COVID-19 pandemic in both private and business life. Inter alia, the following provisions have been implemented:

1. Suspension of the obligation to file for insolvency

Filed under:
Germany, Insolvency & Restructuring, Litigation, Mayer Brown, Coronavirus
Authors:
Dr. Marco Wilhelm , Tina Hoffmann
Location:
Germany
Firm:
Mayer Brown