Austrian tax law provides various reorganisation tools
for companies in an economic crisis. Among others, these include
shareholder contribution (in the broad sense), debt/equity swap,
debt waiver, assumption of debt, letter of comfort, participation
right, capital decrease, surety/guarantee, assumption of
performance, silent partnership, debt mezzanine swap and
restructuring trust.
Particularly in these challenging times due to the global
COVID-19 pandemic, companies should be aware of all available
reorganisation tools. The following article provides an overview of
some of them.
- Shareholder contribution (in the broad
sense)
Shareholders can contribute equity to the company on a voluntary
basis, which is called a shareholder contribution
(Gesellschafterzuschuss). However, there is no general obligation
for shareholders of an Austrian limited liability company
("LLC") to make such contributions in a crisis. In
principle, voluntary restructuring
