Professional counselling can show companies ways out of economic crises. However, funds for financing advisory services are often not (or no longer) available in such times. In order to nevertheless enable affected companies to receive counselling in order to reduce the debt burden that built up during the Corona pandemic, the federal government has established a new component within the framework of Bridging Assistance III.
In the course of the German government's extension of Bridging Aid III until September 2021, new subsidies were announced at the same time (for more details click here) .
Since enterprises that have to restart and that have built up debts during the period of closure are often on the verge of insolvency despite the subsidies, they should also receive support in this situation. Many enterprises cannot pay for external consultants, even though the need for such professionally qualified support is obvious.
This is where the new federal aid comes in. In future, it will reimburse lawyers' fees and court costs up to 20,000.00 euros per month for restructuring companies in the event of imminent insolvency. Ultimately, this means support for debt relief.
By assuming court costs, in addition to bilateral negotiations with creditors, the new StaRUG procedure can also be taken as a restructuring path, which does not constitute insolvency proceedings, but still triggers court costs. The assumption of costs of up to 20,000.00 euros per month for lawyers' and court costs roughly corresponds to what such proceedings can cost a small to medium-sized enterprise. The aim of these proceedings is always the financial restructuring of a company that is threatened with insolvency, i.e. to bring about a debt cut with the creditors.
In addition, the state provides a "restart premium" as a subsidy for new hires and the resulting increase in personnel costs.
However, the requirements for receiving Bridging Assistance III must be met as a basis. The companies already receiving support under this aid programme can assume that they are also entitled to this aid.
We will be happy to assist you with your planned restructuring.