COVID 19: impact of and changes to the Finnish Bankruptcy legislation

The ongoing global COVID-19 pandemic continues to have an adverse effect on economies worldwide and governments are looking into further measures to mitigate the negativities relating to the pandemic. In Finland these mitigating measures introduced by the government have included amongst others amendments to the employment legislation different government grants aids and loans as well as amendments to the Finnish bankruptcy legislation. In this briefing we concentrate on the amendments to the Finnish Bankruptcy Act (120/2004) which directly derive from the COVID-19 pandemic.

Starting point: the Finnish Bankruptcy Act prior to COVID-19

Pursuant to the Finnish Bankruptcy Act as in force prior to the outset of the COVID-19 pandemic in order for a company to be declared bankrupt it must be insolvent and the nature of the insolvency...