The Covid-19 crisis is impacting on all businesses across Germany including the dynamic German start-up scene. In this article we outline some of the more important measures taken by the German government to support start-ups through the crisis. These measures include providing immediate financial support, loan finance, subsidies for short-time work schemes, relaxation of management obligations to file for insolvency, tax relief schemes and the suspension of social security payment obligations.
The German government has moved quickly and decisively to protect businesses from the short-term impact of the Covid-19 pandemic. A new law was passed by parliament using remote voting procedures and comes into today, 27 March 2020. The Covid-19 Suspension of Insolvency Law (COVInsAG) provides a protective shield for businesses against the economic fallout caused by the extraordinary measures taken to limit the spread of the SARS- CoV 2 virus which causes the illness we now know as Covid-19.
The law addresses three main areas:
Cash pooling during the COVID-19 pandemic provides particular challenges for management. What the most important issues on which to focus?
Many businesses, particularly those operating internationally, have set up group cash pooling systems to optimise payment processes and maximise liquidity. A well-structured cash pooling system offers a treasury department transparency over the group's liquidity and by centralising financing requirements can reduce costs.
During the UK government’s daily COVID-19 press conference on 28 March 2020, Business Secretary Alok Sharma announced that changes to insolvency laws are to be introduced at the “earliest opportunity,” to provide businesses with greater flexibility and support to “weather the storm.”
Proposed changes
The new restructuring tools include:
Amidst the uncertainty in the global capital markets introduced by the COVID-19 pandemic, many clients have begun to plan for an economic downturn. This briefing, while not exhaustive, highlights certain U.S. tax issues that clients, both debtors and creditors alike, should consider as they plan around the rapidly evolving economic environment.
Debt Restructurings and Modifications
On March 27, 2020 both chambers of the German parliament passed emergency legislation to mitigate the economic impact of the COVID-19 pandemic encompassing, inter alia, a suspension of the obligation to file for insolvency, corresponding limitations of the management’s and lenders’ liability and introduction of a moratorium on certain contractual obligations.
On December 20, 2019, the honorable Marvin Isgur, judge of the Southern District of Texas Bankruptcy Court, issued an opinion holding that Alta Mesa Holdings (“Alta Mesa”), an upstream oil and gas producer with operations based in the STACK formation, could not, under Oklahoma law, reject certain gathering agreements in its bankruptcy case.1 The holding in Alta Mesa follows a similar outcome issued less than three months earlier in In re Badlands Energy, Inc.,2 a case decided by a Colorado bankruptcy court applying Utah law.
On July 24, 2019, the Monetary Authority of Singapore (MAS) issued the Consultation Paper on the Proposed Framework for Variable Capital Companies Part 3 (the Consultation Paper), which covers the proposed subsidiary legislation relating to the insolvency and winding up of a v
Eine Betriebsprüfung beim Arbeitgeber kann dazu führen, dass Sozialversicherungsbeiträge nachgefordert werden. Die Folge kann eine drohende Insolvenz sein.
Die Restrukturierungs-Richtlinie ist in aller Munde. Wir zeigen, welche Auswirkungen sie auf das Arbeitsrecht hat.
Der vollständige Name lautet: Richtlinie (EU) 2019/1023 des Europäischen Parlaments und des Rates vom 20. Juni 2019 über präventive Restrukturierungsrahmen, über Entschuldung und über Tätigkeitsverbote sowie über Maßnahmen zur Steigerung der Effizienz von Restrukturierungs-, Insolvenz- und Entschuldungsverfahren und zur Änderung der Richtlinie (EU) 2017/1132.