After the Bavarian Minister of Justice had already proposed a suspension of the obligation for at timely insolvency filing in cases of natural disasters in the summer of 2016, the Ministerial Conference of the State Ministers of Justice now followed this proposal in November 2016. They agreed that the three-week insolvency application period of § 15a InsO does not take into account the special situation surrounding natural catastrophes. In the short time frame foreseen by § 15a InsO, it is often not possible to clarify as to whether the damage inflicted can not be offset by various compensations (e.g., by insurance companies).
Until 8 November the month began rather “ordinary” and did not continue the rebound from September. Obviously, everybody was waiting for the outcome of the US Presidential elections. And then the unthinkable (at least from the viewpoint of the MSM) happened – Trump was voted President. And then, again, the unthinkable happened: stocks did not only NOT crash but – especially in the US – started a rally rarely seen.
With a judgment published in May 2016, the German Federal Court of Justice (“Bundesgerichtshof”, “BGH”) further tightened the requirements creditors have to meet in order to defend a claw-back of monies received prior to insolvency according to sec. 133 German Insolvency Act (“Insolvenzordnung”, “InsO”).
In September 2016, I published a comprehensive analysis (in German) of the potential impact of an economic crisis on the restructuring prospects for companies in Germany. The analysis is based on a total of seven theses, which I discussed in a (non-representative) survey among representatives from banks, funds, research and consulting.
August remained a relatively quiet month – especially in comparison to June and July. The developments of the previous months (and the season) only took a small toll on the current German economy. However, the outlook has deteriorated.
Amid Brexit, the Turkish Coup and now also terrorist attacks on its soil, the German economy overall remains strong in July 2016: