German Insolvency Law adjusted to uncertain times (CovInsAG becomes SanInsKG)
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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: