Generally, as you pass the paperwork to the court system....you as the owner or board...are finished. You are relieved of the company, and it becomes a state asset. The judge will then appoint a lawyer to become the new 'CEO' and attempt to rebuild the company, or prepare it for selling off to a second company.
Does this work, in keeping the company afloat? It's a 50-50 proposition. If there were a couple of bad management decisions made, maybe a new boss will be able resurrect the company. If this were a decade long decline and due to older equipment in the mix....the new appointed boss might clean up the plant/factory.....selling it for property value only, and then dismiss the remaining employees.
Is the current trend creating a bigger mess to handle bankruptcies? On this....one might question how the doubling or tripling in bankrupt companies might be handled in some efficient manner. Add to it....the trend is based on crappy power or natural gas estimates for the next twelve months, and no one (in a clear mind) would be stupid enough to eyeball a weak company to buy.
So, there is a snowball effect going on. Momentum is building for a huge collapse of companies which were performing up to this point....paying tax revenue into the pot and giving thousands of Germans decent jobs.
Political chaos arriving out of this? Once you lessen the tax revenue pot, and reality sets in for the future budget....I would speculate that some political parties are in a for a wild 'ride' over the next two years.
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