The reprieve is over. A year-long waiver on insolvency filings has ended in Germany and there are already signs that bankruptcies are starting to pick up in Europe’s largest economy.
Germany introduced the waiver last March, when the COVID-19 pandemic hit, part of a package of measures aimed at supporting businesses but which gave rise to the charge that the government was simply propping up “zombie companies” with no future.
Insolvencies duly fell. But since October, Berlin has phased out the waiver. This year only firms awaiting state aid provided since November were exempt from filing – until now. Monday is the first business day that exemption no longer applies.
“The expiry of the supposed protection means a return to regular competit…
Read the full article at: https://www.reuters.com/world/europe/times-up-zombie-german-firms-insolvency-waiver-expires-2021-05-03/