It will now be discussed to extend these measures, as if the insolvency law is a suitable Instrument for the prevention of bankruptcies.
“With the extension of the Absense of thought, the obligation to apply for Insolvency, are now to be company more protected before, for Corona in the bankruptcy. That sounds plausible, but it is a two-edged sword,“ says Weinhofer. “Companies, according to the 1. March 2020 gem. §67 Para 1 IO were over-leveraged or need to display their over-Indebtedness (continue). This is for a lot of occurs call Board drivers on the Plan that were previously in the wrong location and not primarily by the crisis have been taken, but now, as it were, will benefit.“
Even more problematic is that a financially insolvent company to other market (needs to communicate to participants by filing for bankruptcy) is open, that it is over-indebted and de facto insolvent.
“The Status quo is veiled,” says Weinhofer. “It companies are in the market, the insolvency of not only de jure Mature, but de facto. This is an acute threat to their business partners and suppliers.“
Creditors have no well-functioning credit risk management and credit checks of all the available sources of information queries, thus run the risk of supply relationships with customers to maintain, are no longer able to pay and to suffer in order to rising bad debts.