New insolvency law for groups of companies finalised – International Law Office (registration)

The Law for the Facilitation and Management of the Insolvencies of Groups of Companies was finalised on April 13 2017 and announced on April 21 2017. It will enter into force on April 21 2018. Contrary to certain requests within German legal literature, the new law places no emphasis on a consolidation of the insolvency estates of certain group companies. Instead, it firmly sticks to the principle of ‘one company, one insolvency proceeding’. Consequently, the insolvency of a group of companies will still lead to multiple individual insolvency proceedings. However, the new law aims to achieve bet…