Government measures in key jurisdictions 3rd edition final - Flipbook - Page 7
Austria
Insolvency
•
Has the government
•
made any changes
to insolvency
legislation?
•
Contractual
Issues
The duty to file for bankruptcy due to over-indebtedness was 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 million.) 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 fell 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 fell 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