What is meant by imminent illiquidity?

Imminent illiquidity (Section 18 of the German Insolvency Code) means that a company may not be able to meet its financial obligations, such as wages, invoices or loans, in full and on time. This may be due to a financial crisis, a deterioration in the market situation or other factors. It is important to watch out for signs of imminent illiquidity at an early stage, so that you can react in good time and take remedial action if necessary.