In the first quarter, 1,091 corporate bankruptcies were registered, which is the highest in 15 years according to the General Creditors Association (AKV Europa). This year it is predicted that there will be more than 4,000 bankruptcies, including rejections due to a lack of assets, resulting in over 7,000 insolvency proceedings. The number of company insolvencies increased by 35.01 percent compared to last year, with larger companies with several hundred employees being increasingly affected.
The increase in bankruptcies has had a significant impact on the economy and employment. The number of employees impacted by insolvency rose by 63.95 percent to 5,294 people. Liabilities also increased significantly to almost 2.2 billion euros in the first quarter, primarily due to the Signa insolvencies. However, there is some hope as restructuring plans are being made in a significant number of cases. Approximately a quarter of the annulled procedures had restructuring plans agreed upon with creditors, with an average rate of 42.30 percent. In half of the cases, creditors received over 25 percent while the other half received less than this amount. In about a third of cases, there were distributions with an average rate of 15.38 percent.
This challenging financial landscape for many businesses highlights the need for support and intervention from governments and financial institutions to help prevent future insolvencies and protect employees’ rights during times of economic uncertainty.
It is important for businesses and individuals alike to understand their financial obligations and seek professional advice when facing financial difficulties or concerns about potential insolvency issues.
