Insolvency practitioners warn: German companies prior to the bankruptcy wave

German companies, a bankruptcy wave in the coming year. Especially the automotive suppliers, the trade and business in Eastern Germany are threatened. Prior to that, at least, Lucas Flöther, the receiver in bankruptcy of Air Berlin and spokesman of the grave value circle warns, according to an Association of leading insolvency administrators in Germany.

“The number of insolvencies to rise again slightly and this will increase next year significantly,” said Flöther the German press Agency. The economic boom and the continuing low-interest-rate policies blocked, is that many companies without a competitive business model to be in for some time.

305.000 company with insolvency risk

Similarly, the economy argues credit reporting Agency Crif Bürgel. Consequently, 305.000 company will launch nationwide with financial problems into the new year, which mean an increased risk of insolvency. Especially big is the Problem according to the message, in Saxony-Anhalt and Saxony, where nearly 12 percent of all farms were categorised as threatened. In Bavaria and Baden-Württemberg only 6.4 to 7.0 per cent of the company, according to Bürgel-study in financial difficulties. Companies in which the cheap money lack of business covered models are also referred to as “corporate Zombies”.

It, you give in all sectors of the economy, said Flöther, “but the industries particularly hard hit by the downturn”. The trade was about the last already recorded rising number of Bankruptcy. Just look at the auto suppliers in the end of the boom was now noticeable. The demand for restructuring experts increases, a number of bankruptcies had already been reported. The industry suffer from the diesel debate and the international fall in demand.

electric mobility car suppliers

The change to electric mobility doing many of the components, and the automotive suppliers are specialized, superfluous. “The low interest rates and the good economy have covered many of the Farms that they have no genuine leadership perspective and a Plan for change in the auto industry. The is now-a-days.“

In the East of Germany there are many car suppliers. “At the same time, over the decades, grown family farms, which can compensate for weaker phases better is often missing,” said Flöther, has the headquarters of his firm in Halle in Saxony-Anhalt. The death of the “corporate Zombies” is from his point of view is not disturbing.