In Germany, the number of regular insolvencies is rising again faster
In Germany, the number of corporate insolvencies is rising again at a faster pace. According to preliminary figures, 13.5 percent more proceedings were filed with the courts in July compared to the previous year, as reported by the Federal Statistical Office. In June, there was a single-digit increase of 6.3 percent for the first time in months.
It is still unclear whether all the insolvency applications will result in a procedure that will be included in the official statistics. According to the final results, there were 1,934 corporate insolvency applications in May. This was 30.9 percent more than in May 2023.
Creditors are concerned about 3.4 billion euros, compared to 4.0 billion euros a year ago. The proceedings are therefore smaller on average. Companies in the transport and logistics sector are most affected. Employment agencies and construction companies also frequently file for insolvency.
According to the Institute for Economic Research Halle (IWH), the current insolvency applications in July mainly affect industrial companies. The significant increase in insolvency numbers affects all sectors, but is particularly strong in industry: After 100 industrial companies filed for insolvency in June, 145 did so in July.
The following are two types of insolvency proceedings that could potentially be seen in the current situation: bankruptcy and reorganization proceedings. Due to the increasing number of corporate insolvencies in Germany, more companies may need to consider these options.
