Remedy for Managing Directors in the Time of COVID-19: Suspension of insolvency filing obligations and limitation of liability risks in Germany

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The Federal Ministry of Justice and Consumer Protection (BMJV) now implements, with great commitment and unprecedented speed, what it has generally announced on 16 March 2020:

..The suspension of the obligation to file for insolvency

..The limitation of liability risks for managing directors in an insolvency situation

These measures shall be adopted within less than a week and a half. The aim is to help directors manage the disruptive effects of the COVID-19 pandemic on the liquidity situation of many companies and avert further negative business and economic consequences against the background of the strict German insolvency filing and liability regime in insolvency situations. The BMJV and restructuring experts, have collaborated closely to design these provisions.

Please see full Alert below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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