Relaxation of the requirement to file for insolvency under German law
24 October 2008
Mayer Brown Legal Update
In response to the current crisis in the financial markets, the German Parliament has passed new legislation, which came into force on 18 October 2008, amending parts of the German Insolvency Code. These amendments include a relaxation of the obligation on the management of limited liability companies (and other legal entities) to file for insolvency in the event that the company is “over-indebted”, affording such companies a breathing space in which to recover or possibly to restructure their business.