Since 27.03.2020, companies in financial difficulties due to the COVID-19 pandemic have been exempt from the obligation to file for insolvency under certain circumstances. This exemption applied to all grounds for insolvency until 30.09.2020(see also our article from May 2020 on COVInsAG). With effect from October 1, 2020, the suspension was initially extended exclusively for over-indebted companies for the period until December 31, 2020(see also our article on this from September 2020).
At the end of December 2020, the suspension of the obligation to file for insolvency was extended again until January 31, 2021. Since 01.01.2021, a suspension requires that the company has applied for financial assistance under state aid programs for the period 01.11.2020 to 31.12.2020 or at least would have been eligible to apply. On 20.01.2021, the German government decided to extend the suspension of the obligation to file for insolvency until 30.04.2021. From 01.02.2021, companies that have applied for state corona aid for the period 01.11.2020 to 28.02.2021 or would at least have been eligible to apply will benefit from the suspension.
This is the third time that the suspension of the obligation to file for insolvency has been extended. As individual requirements have changed at the same time, it has become confusing for the legal layperson. In order to avoid civil and criminal liability risks, it is therefore advisable to obtain the opinion of a lawyer specializing in insolvency law. The basic prerequisite for a stay remains that the economic crisis of the company is based on the consequences of the COVID-19 pandemic and that the inability to pay can be eliminated in the short term. The other requirements must be examined on a case-by-case basis.
The author and your usual contacts will be happy to answer any questions you may have!
Dr. Jan Hermeling
hermeling@tigges.legal
+49 211 8687 138