The Coronavirus (COVID-19) and the various measures taken to contain its spread threaten to cause severe damage to the German economy. Companies that are directly or indirectly affected by the outbreak should expect their operating capacity to be reduced and a number of financial consequences. In extreme cases, the COVID-19 crisis could lead to liquidity problems that could threaten the company’s existence and lead to insolvency.
In order to avert these (threatening) liquidity crises for companies, the Federal Government, the European Commission and the state governments have announced comprehensive packages of measures. These include regulations on short-term work compensation, relief for state emergency aid, e.g. liquidity support and risk assumption (e.g. KfW Entrepreneur Loan), reactivation of protective shields (for key companies, among others) as well as fiscal liquidity support for large caps, mid-caps and SMEs.
We have compiled a checklist with an overview of all major aid programs and rescue umbrellas, which we would be happy to share with you and help you to review relevant programs and applications.
Our multidisciplinary COVID-19 team of highly qualified lawyers from the fields of restructuring, insolvency and corporate law, banking and finance, antitrust and state aid, tax, labour, healthcare, life science and public law, is well placed to advise you on restructuring issues resulting from the COVID-19 crisis.
With over 20 offices worldwide and over 130 lawyers at our four locations in Germany, we can offer all-round support from the expert who has a perfect command of your legal problems and the market in which you find yourself.
Feel free to contact us at any time if required. We will also be happy to keep you informed about further developments in our newsletters and client alerts.