Although we will see in the following that not all but most indicators point to another record month of July (thereby topping June), there are at least some minor signs of trouble ahead – which still can be resolved easily, though. Hence, let’s take a deeper dive into the data:
With its judgment of 19 October 2016, the OLG Frankfurt (Frankfurt Higher Regional Court) upheld a ruling by the LG Frankfurt am Main (Frankfurt Lower Regional Court) from 2015 on the avoidance of advisors’ fees in the insolvency of the photovoltaic company Q-Cells.
Only one month after the surprising decision of the German Federal Tax Court (“Bundesfinanzhof” (BFH)) on the so-called “Decree on Turnaround” (“Sanierungserlass”), the German Bundesrat had already proposed a new statutory regulation and also the German higher fiscal authorities (OFD Frankfurt) has issued a directive on how to deal with applications for the waiver on the taxation of “turnaround profits”. And now the German Federal Government (represented by the Federal Ministry of Finance, BMF) and the German Parliament seemingly want to set the pace:
While the Grand Coalition has so far only dealt stepmotherly with the third stage of the insolvency law reform during the now expiring legislative period, it’s actions seems seem to get pace at the very last minute as the recent introduction of a “group insolvency law ” into the German Insolvency Act illustrates.
Contrary to my belief, the German legislator seems to have understood the gravity of the situation with which the recent decision of the German Federal Tax Court (“Bundesfinanzhof” (BFH)) has left the turnaround community in dealing with companies in crisis. The German Bundesrat as well as the fiscal authorities reacted rather quickly, unlikely as it may have seemed.
After all these questionmarks, doubts and armageddon-foresights (cf. for February here) now that: Hope! First, we all survived the 15th of March 2017 – despite the doomsday-sayers, neither the debt-ceiling nor the rate-hike in the US nor the Dutch elections could derail the “economic train” which seems to get momentum even beyond Germany now. But, as always, I am getting ahead of myself. So, let’s see what’s behind the (German) curtain for this month: