Vol 17 (2020) - Issue 3

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COVID-19: Developments in Austrian Restructuring Law

Synopsis

In March and April 2020, Austria passed several COVID-19 laws aiming at avoiding the opening of insolvency proceedings over the assets of Austrian companies that were financially stable prior to the COVID-19 pandemic. This article provides a summary of the relief measures taken in the area of Austrian restructuring law, while also providing a comprehensive overview on Austrian insolvency proceedings, crisis financing, and associated management liability.
While the newly introduced measures undoubtedly are a first step in the right direction, it remains to be seen whether they will be sufficient to prevent a significant rise in insolvency proceedings over the summer. Although further restructuring measures are not yet currently in political discussion, we believe additional measures similar to the ones implemented in other European jurisdictions could be adopted in the upcoming weeks, because of economic and political pressure.