The German Creditreform agency assesses the number of corporate insolvencies to increase to up to 800,000 in 2021, many of these by March next year. This will be mostly Mittelstand companies that are muddling through currently, with or without support or bridging loans from the government. That would be 20-25% of all companies in this sector in Germany.
Total insolvencies may rise even higher, under plans of the Christian Democrats to end, by Dec. 31, the temporary suspension for bankruptcy proceedings that are mandatory under law for troubled companies. At present, Creditreform estimates the number of hidden insolvencies to stand at 500,000.
