MIL OSI Translation. Region: Germany / Deutschland –
Source: CDU CSU
December 14, 2020
Short distances ensure fast processes
On Thursday, the German Bundestag will pass the law on the further development of restructuring and insolvency law in 2nd / 3rd Reading. The deputy chairman of the CDU / CSU parliamentary group Thorsten Frei explains:
“The proposal drawn up by the Federal Ministry of Justice to amend the restructuring and insolvency law, with which we are expanding the restructuring options for troubled companies, originally also provided for a concentration of the insolvency courts. According to this, only those local courts that are located at the seat of the regional court should function as insolvency court.
In this respect, it is a great success that we were able to maintain the status quo at our insistence and thus enforce the principle of subsidiarity. This is also important in that both people and companies in this area feel that the rule of law is not withdrawing. In doing so, we also ensure that rural areas are strengthened.
According to the current legal situation, the states can determine additional insolvency courts under their own jurisdiction. This possibility has various advantages. On the one hand, the countries can decide locally where, for example, there is a special need due to a particular economic strength. This will shorten the routes for companies. Thanks to the regionalization, the competent courts are more familiar with the circumstances of the case, the companies involved and the overall context. Also from the point of view of the courts and the control obligations incumbent on them with the proceedings, physical proximity is an advantage. In addition, the cases are spread over more shoulders by several courts.
Overall, we were concerned that the originally targeted concentration of insolvency jurisdiction could have led to delays, especially in ‘normal cases’, which could also further worsen the prospects. Such uncertainties would have been difficult to convey to the companies concerned. “
EDITOR’S NOTE: This article is a translation. Apologies should the grammar and / or sentence structure not be perfect.