(Bloomberg) — Germany is bracing for a surge in insolvencies starting Thursday, when a moratorium to help companies survive the coronavirus outbreak comes to an end.
From this month, businesses that can’t pay their bills will again be forced to seek court protection. Since March, that hasn’t been the case for those that could pin their lack of liquidity on the pandemic and show they stood a good chance of overcoming the crisis.
“Those that could be saved were rescued,” said Tillman Peeters, managing partner at Frankfurt-based financial advisory firm Falkensteg. “The numbers will inevitably rise” now that the safety net has been removed.
The help offered to ailing companies was part of a package of government measures designed to cushion them from a steep economic recession stemming from the virus. The ending of the moratorium will result in a “wave” of insolvencies and — because of a