DeStatis: Recovery rate only 2.6%

The Federal Statistical Office (DeStatis) reported in November that the creditors in insolvency proceedings terminated until the end of 2014 could only record an average recovery rate of 2.6% of their original claims (recovery ratio).

In the case of insolvency proceedings of companies which were commenced in 2010 and ended by the end of 2014, the recovery ratio was 5.0%. In the case of consumer insolvency proceedings, the coverage rate was significantly lower at 1.6%. The success of the restructuring process also varied: for example, 26.7% of the companies with claims of more than EUR 5 million could be turned around. On the other hand, very low turnaround success-rates were achieved in procedures with relatively low claims: only 1.6% of companies with claims under € 50,000 were turned around.

Overall, the recovery ratio remains below the results of the predecessor of the Insolvenzordnung: in the mid-1980s, an average recovery ratio of 3.5% was established (see Kuhn / Uhlenbruck, KO, 10th edition 1986, Preface No. 3a). In the view of these figures, the question must be allowed whether real progress has been achieved after twenty years of reform.

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