private people hour loans, over-indebted companies muddle more – are bearing the brunt of the banks are: you Have not put enough money back, can loan defaults lead to the ruin of their balance sheets.
Now Federal Minister of justice, Christine Lambrecht (SPD) wants to free over-indebted companies due to the Corona epidemic even longer from the duty to file for insolvency. “To the pandemic of over-indebted companies due to the time to give up, in many sectors, a resurgence in economic activity or to restore the state offers of assistance, I would propose that the obligation to apply for Insolvency for these companies to continue until the end of March 2021 to suspend”, the Minister said in an Interview.
liquidator warns of loss of confidence
One who is not agree, is Christoph Niering. He is head of the Association of insolvency practitioners, for more than 25 years in the industry and experts in hearings in the Bundestag, when it comes to insolvencies. His Argument: The longer the application remains the obligation is suspended, the more difficult it is for the creditor to trust the company. At the end of a huge wave of bankruptcies could drag the banks massively affected. The theme is developed to the case for the new Chancellor candidate of the SPD, Olaf Scholz, says Niering in an Interview with FOCUS Online and the business courier.
Mr Niering, the obligation to apply for Insolvency is suspended in times of Corona, the number of insolvencies in Front drops sharply in comparison to the Corona times. Apparently, many companies use it is that you are not forced to file for bankruptcy. What happens when the applications need to be made?
Christoph Niering: If the requirement to submit resumes, we will be a sudden rise in bankruptcies have been recorded. The insolvency courts and insolvency administrators will then get a lot of work. This work will be able to cope, as we were recently able to cope in 2004, even a twice as high number of insolvencies. Liquidator, are, today, in General, no single fighter more, but can rely on a large workforce.
If, however, the retail Association forecast of 50,000 bankruptcies come at a stroke, it could be for the insolvency courts and insolvency administrators difficult. So I don’t expect but. I believe that many still will go out of the market: The Barber, the restaurateur or the small travel office to makes, completes, to pay his remaining debts without bankruptcy. FOCUS-MONEY – rate objective of $ 5000! Gold beats money
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so Far, the suspension of the Application requirements in the SPD-led justice Ministry is treated. Is the issue of the Finance Minister and Chancellor candidate, Olaf Scholz, to adopt?
Engineering: The Whole thing has become a big political issue, which no one can escape. Olaf Scholz has to say anything about it, because now new demands for state aid to be loud. As Finance Minister, he can not watch as long as companies that are insolvent or over-indebted at the expense of their creditors carry on. Because that leads in the end to default in the Control register. As a candidate for Chancellor, but he has an interest, that a wave of insolvencies does not affect the election year is negative. The application period starts next year, will enter the with the bankruptcies associated job losses shortly before the election. And workers, voters, actually Yes, ordinary voters of the SPD are.
Deferred bankruptcies damage the creditors
So, the bankruptcy is supposed to work right as quickly as possible so as in the past, and everybody has to admit his defeat when he is over-indebted?
Engineering: Yes, because the over-Indebtedness is an early warning system. Not when the coffers are completely empty, should be submitted. Only when a company presents at an early stage of the bankruptcy petition, can succeed in a restructuring through a bankruptcy procedure. The best example of Galeria, Karstadt, Kaufhof is. The coffers are empty, you can handle the business just yet. Therefore, you have to play all of the thoughts of an abolition of over-Indebtedness as the reason for Insolvency is a consistent refusal to grant.
Why?
Engineering: Because otherwise the damage to the creditors to be moved. You will not get your money and could get the result also in economic difficulties. In addition, our economy is based on trust. If creditors can’t trust to get your money, you have to swipe for payment, and to advance change. The dramatic consequences are then obvious.
you mean for the banks?
Engineering: I mean, for the suppliers, the landlords, and, of course, the banks.
Need to go to the banks to Worry about?
Engineering: considerably more loan defaults. Whether the increased risk provisions sufficient for such a pandemic situation, I can not judge. It is clear, however, that traditional Bank collateral are under pressure. What is the safety of a hotel property is still of value, if the guests absence, and the utilization rates are permanently in the basement? I would not as a Banker, currently comfortable in my own skin. There are simply too many uncertainties: when will the vaccine? What happens if the Virus returns in the Winter, massive? Once again the suspension of loan repayments possible? What happens if the pandemic and its effects last for a long time?
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*The contribution of “liquidator warns of bankruptcies: “for Me, would be published as a Banker comfortable in my skin,”” by economy courier. Contact with the executives here.
