Insolvencies: rising interest rates, recession – experts expect a wave of bankruptcies

Frankfurt There was good news this week in the struggle to save the real estate firm Corestate. The shareholders accept a restructuring plan and thus averted the company’s insolvency for the time being. The topic repeatedly made headlines, as did the renovation cases of Galeria Karstadt Kaufhof, Adler Immobilien and Takko Modemärkte.

Although the latest economic indicators turned out to be somewhat more optimistic than long expected, it still seems clear that the number of restructurings is likely to increase in the coming months.

For many years, bankers and consultants specializing in reorganization and restructuring had little to do. Record low interest rates and a robust economy ensured a small number of company bankruptcies. The state aid because of Corona or the Ukraine war extended the trend.

But in 2023 the economy should change radically for the reorganizers, that was the message of a meeting of around 200 restructuring experts from the Turnaround Management Association (TMA) Germany in the Taunus town of Königstein a few days ago.