Coronavirus - Government measures in key jurisdictions - Flipbook - Page 7
Austria
3
4
Insolvency
•
Has the
government made •
any changes
to insolvency
•
legislation?
Contractual
Issues
The duty to file for bankruptcy due to over-indebtedness is suspended until 30
June 2020, if the over-indebtedness occurred after 1 March 2020.
To the extent the insolvency was caused by COVID-19, the mandatory deadline to
file for bankruptcy has been extended to 120 days following the insolvency.
Dispute resolution insider special edition: COVID-19
•
Loans entered into prior to 15 March 2020 and granted to a consumer or a
microenterprise (i.e. a company which employs less than 10 persons and whose
annual turnover and/or annual balance sheet total does not exceed EUR 2 mio.)
will be subject to a moratorium to the extent the consumer has suffered a loss
of income due to the COVID-19 crisis as a result of which it cannot be expected
to continue the debt repayment or the microenterprise is unable to continue the
debt repayment or it cannot be expected to continue the debt repayment without
impairment the economic basis of its business due to the COVID-19 crisis. This
regulation encompasses any payment obligation under the relevant loans which
would fall due between 1 April 2020 and 30 June 2020. The mentioned payment
obligations are deferred for a period of three months from the initial due date
and the lender may not terminate the loan on the grounds of a material adverse
change or the non-payment during the period of the moratorium.
•
To the extent a party under an agreement entered into prior to 1 April 2020 fails to
make a payment which falls due between 1 April 2020 and 30 June 2020 as a result
of a material impairment of its economic basis due to the COVID-19 crisis, the other
party may not claim an agreed default interest in excess of 4%. Furthermore, such
party would not be required to pay out-of-court enforcement costs.
•
To the extent a party under an agreement entered into prior to 1 April 2020
defaults on an obligation due to a material impairment of its economic basis as a
result of the COVID-19 crisis or due to performance being impossible as a result
of the trade restrictions, the other party may not claim a contractually agreed
penalty, irrespective of whether it was stipulated to apply irrespective of the
obligor’s fault or not.
•
COVID-19 is generally considered to constitute an event of force majeure under
Austrian Law. Various legal doctrines are available to legally assess the legal
consequences resulting from the permanent or temporary non-performance of
contractual duties caused by COVID-19. However, due to the multitude of possible
factual constellations, it is difficult to state in general whether and to which extent
COVID-19 provides an exemption from performance obligations. Rather, such
analysis depends on the underlying circumstances of or affecting a contractual
arrangement or the specific contractual agreements in place.
•
Does COVID-19 constitute Force Majeure?
What measures
have been taken
to reinforce
contracts?
Government measures in key jurisdictions
7