Imminent illiquidity under the StaRUG

For the purposes of the StaRUG (the German Act on the Stabilisation and Restructuring Framework for Businesses), imminent illiquidity exists if the company is likely to be unable to meet its existing payment obligations when they fall due (Section 18 (2) of the German Insolvency Code). When examining whether the liquid funds are likely to be sufficient to meet the payment obligations due, a forecast period of 24 months must be applied.