Significant decrease in insolvency applications, pointing to a shift in trend | Relatively high proportion of major insolvencies
In the second quarter of this year, twenty German companies with annual revenue exceeding €20 million applied to open insolvency proceedings. The number of applications in the first half of the year has been stagnant in comparison with the two preceding quarters, coming very close to the level seen in the second quarter of 2018. Despite the overall decline in the number of insolvencies in the current quarter, a shift in trend and an increase in insolvencies are expected. With six large-company insolvencies (involving firms with annual revenue exceeding €100 million), a relatively high number of companies in this category have been affected this quarter, including well-known firms such as Senvion and Loewe.
In addition, this report includes an interview with Tobias Wahl from law firm anchor Rechtsanwälte, who reports on the quarter’s insolvency proceedings, which saw the successful sale of the KNV Group to the logistics-focused Zeitfracht Group.
Overview of insolvency exits
The number of uncompleted cases from 2018 and Q1 2019 fell significantly during the second quarter of 2019.
Of the ninety-seven proceedings from 2018 involving companies with revenue exceeding €20 million, only twenty-three are still in need of a solution, meaning that more than three-quarters of the proceedings have been brought to a conclusion. In addition, almost half of the proceedings initiated in 2019 have already been resolved and completed in the second half of 2019.
You can find additional back issues in the FINANCE Insolvency-Report Archive.