Suspension of the obligation to file for insolvency due to the coronavirus pandemic
According to a press release from the Federal Ministry of Justice and Consumer Protection, from 16.3.2020, the obligation to file for insolvency pursuant to Section 15a of the German Insolvency Code (Insolvenzordnung, InsO) would be suspended if companies experience difficulties as a result of the coronavirus pandemic.
The background to this is that, in the current exceptional situation, it would probably not be possible to complete the processing of applications for public assistance as well as financing or restructuring negotiations within the three-week period for the mandatory filing for insolvency so that, for this reason, companies might be forced to file for insolvency. Therefore, the intention is to suspend the previous three-week obligation to file for insolvency via a statutory provision for a period of up to 30.9.2020.
Please note: However, the implementation into applicable law still needs to happen. To this end, please follow our updating information at www.pkf.de. Until then, the obligation to file for insolvency in accordance with Section 15a InsO if there are grounds for insolvency will still be in effect.