By Andreas Kiler
BERLIN (Dow Jones) – The obligation to file for insolvency is to be suspended until the end of the year for indebted companies due to the Corona crisis. This was decided by the Bundestag, which on Thursday evening approved a corresponding bill to amend the Covid 19 Insolvency Suspension Act. The Union, SPD, Greens and Left voted for this, while the FDP and AfD voted against, as Bundestag Vice President Thomas Oppermann announced after the vote. According to the draft law, the coronavirus pandemic has not yet been overcome. Many companies are at risk of bankruptcy due to the pandemic.
According to the Bundestag, the obligation to file for insolvency should continue to be suspended in order to continue to give companies the opportunity to restructure and finance themselves by taking advantage of government assistance and in the context of extrajudicial negotiations. However, the further suspension should only apply to companies that are in debt due to the pandemic but are not insolvent. According to the draft law, the suspension of the obligation to file for insolvency due to the corona crisis is to be extended for the period from October 1, 2020 to December 31, 2020 in cases of over-indebtedness.
Contact the author: andreas.kissler@wsj.com
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(END) Dow Jones Newswires
September 17, 2020 18:13 ET (22:13 GMT)
