In the first quarter, there was a sharp increase in corporate bankruptcies, with 1,091 cases registered, the highest in 15 years. This number is expected to rise even further this year, with over 4,000 bankruptcies predicted. These insolvencies will result in over 7,000 insolvency proceedings and have a significant impact on the economy.
The increase in company insolvencies was felt across the board, with larger companies with several hundred employees being particularly affected. The number of employees impacted by insolvency rose by 63.95 percent to 5,294 people. Liabilities also increased significantly to almost 2.2 billion euros in the first quarter, primarily due to the Signa insolvencies.
Despite these challenges, there were some positive signs for creditors. Approximately a quarter of the annulled procedures had restructuring plans agreed upon with creditors, with an average rate of 42.30 percent. In half of the cases, creditors received over 25 percent, while the other half received less. In about a third of cases, there were distributions with an average rate of 15.38 percent. These restructuring plans provide some relief to creditors and may help pave the way for future financial stability for these companies.
