Covid accompanying measures: Austrian insolvency law
Wolfgang Kaltenegger
19 Jan 2021
In order to cushion the economic impact of the Corona pandemic, restructuring under insolvency proceedings will be facilitated. In any case, the affected companies will have longer in 2021 to implement their reorganization plans.
The regulations in detail:
The maximum payment period for the payment of reorganization quotas following judicial reorganization proceedings is extended to three years.
There is a longer payment period for 2021 within which remediation must be completed: The remediation quota, e.g. 20% (of the total debt), may now be paid split over three years. Usually, the quotas were previously divided into an immediate quota of at least 5% and three further 5% quotas within two years. It will become clear in practice whether an immediate quota must continue to be paid and how many further quotas will be necessary.
"2. COVID-19-Justiz-Begleitgesetz"
Facilitated reorganization plan:
§ 11a. (1) The payment periods under section 141(1), first sentence, and section 169(1)(1)(a) of the Austrian Insolvency Code shall each be three years.
(2) Paragraph 1 shall apply to applications for the conclusion of a restructuring plan submitted not later than by December 31, 2021.
Our expert Wolfgang Kaltenegger will be happy to assist you with any questions regarding restructuring.
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