MIL OSI Translation. Region: Germany / Deutschland –
Source: CDU CSU
December 17, 2020
Maintain the market’s self-cleaning powers
Today the German Bundestag will pass the law on the further development of restructuring and insolvency law (SanInsFoG). The extensive legislative package gives companies that have got into difficulties due to the effects of the corona pandemic more time and offers them additional tools for successful restructuring. The legal policy spokesman for the CDU / CSU parliamentary group, Dr. Jan-Marco Luczak:
“The high numbers of infections in recent weeks have made further restrictions on public life inevitable. For many companies, sales collapse in the run-up to Christmas and they get into financial difficulties through no fault of their own. As a Union, we do not want healthy companies to fall into avoidable bankruptcy due to the corona pandemic. That is why we are counteracting this with government support billions in order to secure the existence of companies and jobs.
In order to give companies more time and not to thwart our rescue efforts, we are therefore suspending the obligation to file for insolvency again until the end of January 2021. With this limited period of one month, we are also making it clear that the self-cleaning forces of the market must not be permanently switched off. Companies that are not healthy regardless of Corona and have no economic prospects have to leave the market. It is inappropriate to continue to hold the protective hand of the state through these companies. This is neither in the interests of all other market participants nor in the interests of the company’s creditors.
At the same time, we want to enable companies that have got into financial difficulties due to the corona pandemic as early and unbureaucratically as possible to avoid bankruptcy restructuring and thus give them real prospects for continuation. As a Union, we have therefore urged rapid changes, particularly in the substantive insolvency law, in order to expand the scope for companies in the crisis with new instruments. We are now implementing that. For small and medium-sized companies in particular, it is essential that they now have an unbureaucratic and cost-effective procedure. “
EDITOR’S NOTE: This article is a translation. Apologies should the grammar and / or sentence structure not be perfect.