Economics
Germany Faces Wave of Insolvencies as Filings Waiver Ends
- Many firms will again have to file for insolvency from Oct. 1
- New law set to improve debt-restructuring procedures from 2021
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Germany is bracing for a surge in insolvencies starting Thursday, when a moratorium to help companies survive the coronavirus outbreak comes to an end.
From this month, businesses that can’t pay their bills will again be forced to seek court protection. Since March, that hasn’t been the case for those that could pin their lack of liquidity on the pandemic and show they stood a good chance of overcoming the crisis.