Government measures in key jurisdictions 5th edition - Flipbook - Page 7
Austria
Insolvency
•
The duty to file for bankruptcy due to over-indebtedness is suspended until 31
March 2021.
•
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 31 January 2021. The
mentioned payment obligations are deferred for a period of ten 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?
Has the
government made
any changes
to insolvency
legislation?
Contractual
Issues
What measures
have been taken
to reinforce
contracts?
Government measures in key jurisdictions
7
