The EU Reorganisation Act (EU UmgrG) came into force on 1 August 2023. However, the EU Reorganisation Act does not fundamentally change Austrian reorganisation law. The previous legal system was only changed to the extent necessary to implement Directive (EU) 2019/2121 ("Mobility Directive").

Area of application

For many companies and the management, the crisis means that familiar business decisions and concepts, including the implementation of restructuring steps, have to be adapted to the crisis. There is a risk that the company will become insolvent and that the management will be held liable due to no or a too slow response.

On 22 February 2021, the eagerly awaited ministerial draft regarding the Federal Law on the Implementation of the Directive on Restructuring and Insolvency (EU) 2019/1023 (DRI) was published. The draft includes not only a new federal law on the restructuring of companies ("Restructuring Act", abbreviated to "RA"), but also amendments to the Austrian Insolvency Code, the Court Fees Act, the Judicial Contribution Act and the Lawyers' Tariff Act. The review period ends on 6 April 2021. Austria is obliged to implement the directive by 17 July 2021.

Selected deadlines and dates related to COVID-19 laws, regulations and subsidies in the context of the pandemic.

Table of Content

Already at the beginning of the Corona crisis in March 2020, the legislator decided on various insolvency law measures to mitigate the consequences of the Corona pandemic for the Austrian economy. Since the Corona Pandemic still has far-reaching economic consequences for businesses and entrepreneurs, including even potential insolvency, the legislator has now adopted further measures in the area of insolvency law.

When does insolvency occur and what is to be done?