German Insolvency Law adjusted to uncertain times
21 October 2022
In response to the current upheavals in the energy and raw materials markets, the restructuring and insolvency law will be temporarily adjusted until and including 31 December 2023.
The legislator reduces:
- the forecast period for the over-indebtedness check and
- the planning periods for self-administration and restructuring planning,
and increases the maximum period for the obligation to file for insolvency for reason of over-indebtedness.
The regulations will form part of a new Law Crisis Mitigation Act (SanInsKG, previously named COVInsAG) adjusting certain elements of the German restructuring and insolvency law. This new legislation may be seen as a step towards a genuine "bad weather insolvency law".
In detail, the SanInsKG provides for the following regulations that will temporarily be effective up to and including 31 December 2023: