Land and buildings Ships and aircraft Other tangible assets Liens Retention of title Intangible assets Personal security Debentures Form of debentures Assets covered by debentures Trust receipts or letters of hypothecation

Receivership

Appointment of a receiver Receivers' powers Receivers' obligations Termination of the receivership

Deacons contacts

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6 6 7 7

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Types of security

While every effort has been made to ensure the accuracy of the information contained in this booklet, it is only a summary and should not be relied upon as a substitute for detailed advice in individual cases.

Deacons 2020

Contents

Introduction Corporate insolvency

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Available procedures

2

Liquidation

2

Members' voluntary liquidation

2

Creditors' voluntary liquidation

3

Compulsory liquidation

3

Which procedure?

3

Receivership

3

Scheme of arrangement3

What specific provisions does the new law contain for tenancies?

Under the Insolvency Suspension Act COVID-19 (COVInsAG), the obligation to file for insolvency is suspended under certain conditions due to the coronavirus. The regulations apply retroactively to 01.03.2020.

The coronavirus is spreading fast. Measures to slow its spread are already hitting companies hard and will cause many companies considerable financial difficulties in the foreseeable future.

Obligation to file for insolvency

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.

In recent years the Hong Kong Companies Court has dealt with a large number of applications for recognition and assistance from the Courts of various overseas jurisdictions in relation to cross border insolvency matters. The Court will now routinely grant orders of recognition and assistance to liquidators of companies incorporated in Commonwealth jurisdictions such as the Cayman Islands, Bermuda and the British Virgin Islands, which are all common law jurisdictions which have insolvency law regimes which are in many ways similar to Hong Kong’s own regime.

In Re Southwest Pacific Bauxite (HK) Ltd [2018] 2 HKLRD 449, the Honourable Mr Justice Harris held that a petition to wind up a company on the ground of insolvency should “generally be dismissed” where:

Eine Betriebsprüfung beim Arbeitgeber kann dazu führen, dass Sozialversicherungsbeiträge nachgefordert werden. Die Folge kann eine drohende Insolvenz sein.