M&A COVID-19 Wire - Part 3

Please find here our M&A update on the legislative and further government COVID-19 measures that have now come into force:

1. State Aid

• The Bavarian State Ministry of Economic Affairs, Regional Development and Energy has published guidelines for supporting companies and members of the liberal professions affected by the COVID-19 pandemic. These guidelines make clear that the prerequisite for the granting of emergency aid is a liquidity shortage that threatens the existence of the company as a result of the pandemic triggered by the corona virus, which cannot be compensated for by compensation payments, tax deferrals, other equity or borrowed funds or other liquidity measures. If the company is an affiliated company, the liquidity shortage must be assessed for the company as a whole. At the moment, there is uncertainty as to when there is a liquidity shortage that entitles can claim.