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Background

The Corporate Insolvency and Governance Act 2020 (CIGA) came into force on 26 June 2020.

Schedule 10 of CIGA restricted the presentation of debt-related winding-up petitions where a company cannot pay its bills (including rent) due to COVID-19 in Great Britain.

These restrictions were initially due to end on 30 September 2020, but have since been extended until 30 September 2021.

The Current Position

Der Bundesgerichtshof hat in einer aktuellen Entscheidung seine Rechtsprechung zur Vorsatzanfechtung nach § 133 InsO neu ausgerichtet. Die Anforderungen für diesen in der Praxis äußerst relevanten Anfechtungstatbestand wurden merklich erhöht.

Der nachfolgende Beitrag soll dem Leser einen Überblick über die wesentlichen Neuerungen verschaffen.

Inhalt

Die Steuerstundungen aufgrund der Corona-Pandemie laufen am 30. September 2021 aus. Hier erfahren Sie, welche Anforderungen Geschäftsleiter, Steuerberater und Wirtschaftsprüfer beachten müssen, um Haftungsrisiken zu vermeiden.

Das Wichtigste im Überblick:

The StaRUG provides for a so-called stabilisation order to make it easier for companies to restructure. This is also referred to as a moratorium. We explain the requirements and consequences.

Content

On 1 January 2021, the StaRUG, which goes back to an EU directive, came into force and wants to provide a `second chance for businesses. The abbreviation stands for 'Unternehmensstabilisierungs- und –restrukturierungsgesetz' ('Corporate Stabilisation and Restructuring Act').

With this overview, we want to provide you with a high-level overview of the StaRUG on the following main issues:

Content:

When a business is distressed and is due to run out of cash, advisors are often called upon to carry out an accelerated M&A process. Whilst there may be scope for the process to be run on a solvent (share sale) basis, it may need to be implemented on an assets basis, often via a formal insolvency process. Because of the undeniable threat of insolvency, directors of distressed businesses should obtain specialist legal advice on their duties at the earliest possible stage.

Board considerations

Imagine that IPs have been appointed as administrators of an aerospace engineering company that operates around the world. The company was financially stressed before the COVID-19 pandemic and then sales dried up. With no reasonable prospect in sight, the directors filed for administration and questions have since been raised about how the directors conducted the company’s affairs shortly before it entered administration.

The temporary measure allowing companies and other qualifying bodies to hold AGMs virtually will be extended until 30 December 2020. The measure, which was introduced as part of the UK Government's response to the COVID-19 pandemic, had been due to expire on 30 September 2020.

One of the first questions we are often asked by buyers in distressed M&A situations is what is the likely quantum of employee liabilities? It is not uncommon for buyers to want to restructure the workforce post-completion and early engagement on this issue is key.

Transaction structure and its impact on employment