When an insolvency event occurs

As a common rule of thumb, your company is considered insolvent if it can no longer settle at least 90% of its liabilities within the agreed payment periods or cannot meet this condition again within 3 weeks. Note, however, that any new amounts falling due in the meantime must be included in the consideration.

A company is also insolvent in the case of over-indebtedness, namely if the sum of all assets and expected payments cannot fully cover the company’s liabilities. In this case, managing directors must file for creditor protection. Please, refer to the respective national legal requirements.

In each country, local law should be applied.


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