Rising Bankruptcies: Companies Struggle to Survive Insolvency Proceedings

Düsseldorf More and more companies have to finally shut down operations in insolvency proceedings. Of the 227 large companies that became insolvent in 2022 and filed for bankruptcy, only 42.9 percent could be saved by the end of the first half of 2023 – through a sale to an investor or because the creditors agreed to an insolvency plan. In the same period two years earlier, the rescue had been successful in 57 percent of the cases.

This is shown by an analysis by the Falkensteg consultancy for the Handelsblatt. Companies with a turnover of more than ten million euros were considered. “For years we had historically high rescue rates of 65 percent and more,” says Falkensteg partner Jonas Eckhardt. “We are just noticing that it is becoming increasingly difficult for companies to find a solution in insolvency proceedings.”