The obligation to file for insolvency for companies damaged by the severe storm in July is temporarily suspended.
The cabinet decided on Wednesday a corresponding submission from the Ministry of Justice, which provides for a suspension retrospectively from July 10 until the end of October.
In the meantime, companies should be given the opportunity to take advantage of economic aid.
Justice Minister Christine Lambrecht (SPD) declared that it had to be prevented that companies “only have to go to the bankruptcy court” because financial aid does not reach them on time.
By suspending the obligation to submit an application, “we are giving companies important time”.
The regulation is intended for those companies whose insolvency or over-indebtedness is the result of the flood.
It is about companies with “viable and successful business models” that would not be threatened with bankruptcy without the storms and that, according to the draft law, “have reasonable prospects of restructuring”.
According to Lambrecht, the suspension could be extended again until the end of March 2022 in a second step. The coalition factions are now entrusted with the implementation, after all, the Bundestag still has to pass the law.