Current crises and adjustment to insolvency and restructuring law (SanInsKG)
Due to the economic disruptions triggered by the Ukraine- and Energy-crisis in Europe, the German parliament (Bundestag) passed a bill back in October 2022 to protect distressed companies affected by these crises from the uncertainties of planning and business forecasts. The so-called Act on the temporary Adjustment of Restructuring and Insolvency Law to mitigate the Consequences of Crises (SanInsKG) constitutes, inter alia, the shortening of the going-concern forecast period from twelve to four months. In addition, the obligation to file for insolvency due to over-indebtedness has been extended from 6 to 8 weeks.
In our snapshots below, we provide all the essential information for distressed companies in the current times of crisis and summarise the recent adjustments in German insolvency and restructuring law.
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