In a recent case, the Court of Appeal of Arnhem-Leeuwarden dismissed a claim of the bankruptcy trustee of Welsec against an audit firm for failing to ensure that the audited company, Welsec, included a provision in its annual accounts for a third party claim (ECLI:NL:GHARL:2020:2492).

German legislator finally introduces tax exemption for income resulting from debt waivers in restructuring scenarios with retroactive effect.

To date, a debt waiver has been frequently used as a tool to successfully restructure German-based companies in financial difficulties.