Credit Manager Magazine 9/2021

66 CREDIT MANAGER MAGAZINE WRZESIEŃ / SEPTEMBER 2021 fecma The changes to the grounds for filing for insolvency under SanInsFoG In its last session in 2020, the German Bundestag passed the so-called Act on the Further Development of Restructuring and Insolvency Law („SanInsFoG”), which is applicable law from January 1, 2021. The law is based, among other things, on an EU directive that requires all member states to allow non-insolvency restructuring. However, the expected economic dislocations as a result of the Covid-19 pandemic have prompted German lawmakers to bring forward this legislative project and also create further extensive mitigations for the economic consequences of lockdowns for companies. David Blender KLUTH Rechtsanwälte “Illiquidity in accordance with Section 17 of the German Insolvency Code (InsO) continues to serve as a “general” reason for opening insolvency proceedings, as this applies equally to all debtors, i.e. to natural persons and companies. Illiquidity is the only insolvency reason that has not been changed by the SanInsFoG.”