Fewer corporate insolvencies in the first quarter

Fewer corporate insolvencies in the first quarter

In the first three months of 2020, fewer companies went bankrupt in germany than in the previous year, despite the initial effects of the corona crisis.

4683 cases reported by local courts according to the federal statistical office. That was 3.7 percent fewer than in the first quarter of 2019, according to the wiesbaden-based authority.

The highest number of bankruptcies occurred in the retail sector, including the automotive industry, with 788. Companies in the construction industry filed for insolvency 761 times, while the hospitality industry filed for insolvency 514 times. Because many more major companies slipped into bankruptcy, the claims of the creditors, at around 7.3 billion euros, were significantly higher than the total for the previous year (4.7 billion euros).

So far, the corona pandemic "has not yet led to more insolvency proceedings being opened," the statisticians said. Number of regular insolvency proceedings opened in germany fell in may as in april. Compared to the same month last year, the number fell by 14.9 percent in may.

However, the legislature has temporarily exempted companies that become insolvent due to the corona crisis from the obligation to file for insolvency. In addition, the processing of applications in some courts can take longer at present, because operations there are also sometimes limited. Several economists expect a noticeable increase in company bankruptcies for the year as a whole.

In the first quarter, in addition to the number of corporate insolvencies, 20.672 other debtors filed for bankruptcy, 6.5 percent fewer than a year earlier. Among them were 15.095 applications from consumers and 4659 insolvency applications from former self-employed persons.

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