I. WHY THIS TOPIC IS IMPORTANT
When a company finds itself in financial distress, management faces not only the operational challenge of stabilizing the business but also far-reaching statutory obligations. A central and often underestimated issue in this context are the payment prohibitions triggered once the company becomes insolvent (Insolvenzreife) pursuant to Section 15b of the German Insolvency Code (Insolvenzordnung, InsO). These payment prohibitions serve to protect creditors and to preserve the insolvency estate.
Management finds itself caught between competing pressures: Managing directors who continue to make payments after the onset of insolvency expose themselves to significant personal liability risk, both under civil…