Most large German companies that go through a financial restructuring do so with the aid of a restructuring expert report (Sanierungskonzept) in the form of the IDW S6, a standard published by the Institute of Public Auditors in Germany. For German companies in financial difficulty the IDW S6 is the plan back to profitability.
During the Covid-19 pandemic the duty to file for insolvency is suspended in some circumstances. In these cases IDW S6 is being replaced with more straightforward illiquidity and solvency checks.
A new law suspends the management’s statutory duty to file for insolvency in the event of the German incorporated company’s illiquidity or over-indebtedness. But it is only effective until 30 September 2020, after which…
Read the full article at: https://www.pinsentmasons.com/out-law/analysis/germany-restructuring-coronavirus