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Clifford Chance

Clifford Chance


Coronavirus: German Insolvency Emergency Legislation

26 March 2020

Many key features of the German legal restructuring and insolvency regime are about to be temporarily suspended in an unprecedented move by the German Federal Government which intends to protect German companies from a Corona induced insolvency. These changes to the law are accompanying the massive financial support which is set to be provided by both the government owned promotional bank Kreditanstalt für Wiederaufbau, KfW, and the European Central Bank. They have the goal to grant additional financial support to troubled German businesses in order to prevent insolvency filings which would inevitably have to be made by the management in accordance with Germany's strict insolvency filing regime.

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