Decision of German Federal Supreme Court regarding illiquidity and imminent illiquidity

This briefing from Taylor Wessing concerns the decision of the German Federal Supreme Court regarding illiquidity and imminent illiquidity.

If a fixed-term loan becomes due, the debtor’s payment obligation has to be taken into account when assessing the debtor’s illiquidity according to sec. 17 of the German Insolvency Act (Insolvenzordnung), even if the lender has not demanded the debtor to pay back the loan.

The debtor might be facing imminent illiquidity (drohende Zahlungsunfähigkeit) according to sec. 18 of the German Insolvency Act notwithstanding an extension granted by the lender if negotiations about debt restructuring conducted during this time do not offer secure prospects of success…

If you are registered and logged in to the site, click on the link below to read the rest of the Taylor Wessing briefing. If not, please register or sign in with your details below.


Briefings from Taylor Wessing

View more briefings from Taylor Wessing

Analysis from The Lawyer

  • singapore orchid

    Singapore: Cash course

    The city-state is working hard to become a global wealth management hub, and law firms are gearing up for a prosperous new world

  • Money 317

    Crunch boom

    Financial disputes are starting to dominate the English courts as the long-awaited fallout from the downturn finally comes to town

View more analysis from The Lawyer


5 New Street Square

Turnover (£m): 228.00
No. of Lawyers: 860
No. of Lawyers (Asia Pacific): 79
Offices (Asia Pacific): 3