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German court rejects the ‘bow wave theory’ (‘Bugwellentheorie’) in test for company illiquidity

German court rejects the ‘bow wave theory’ (‘Bugwellentheorie’) in test for company illiquidity
Published on: 19 February 2018
Published by: LexisPSL
  • German court rejects the ‘bow wave theory’ (‘Bugwellentheorie’) in test for company illiquidity
  • What is the German test for insolvency?
  • How is illiquidity calculated?
  • What guidance has been given by the German courts?

Article summary

Restructuring & Insolvency analysis: Andreas Lehmann of Squire Patton Boggs LLP looks at a recent German case which clarifies the German illiquidity or cashflow test and the so-called bow-wave theory. or take a trial to read the full analysis.

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