New German Legislation on Measures to Combat Effects of Coronavirus

New German Legislation on Measures to Combat Effects of Coronavirus

March 25, 2020, Covington Alert

In order to mitigate the effects of the Corona-pandemic on the ability of enterprises to pay their current liabilities, the German parliament has passed a law today containing a set of measures dealing, inter alia, with (i) the obligation to file for insolvency, (ii) certain liability risks of individual directors and managers in connection with a potential insolvency, (iii) the termination of lease agreements, and (iv) liability and claw-back risks resulting from the provision of new credit in the crisis.