insolvency proceedings
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insolvency proceedings
A legally regulated procedure for a person or company that can no longer pay its debts. The goal is to satisfy the creditors as much as possible, either through restructuring or through liquidation of the company.
Nach wochenlangen Verhandlungen musste die Fluggesellschaft schließlich ein Insolvenzverfahren beantragen.
After weeks of negotiations, the airline finally had to file for insolvency proceedings.
This long word is easy to understand if you break it down: It consists of 'die Insolvenz' (insolvency) and 'das Verfahren' (procedure/proceedings). The '-s-' in between is a linking sound that connects the two parts.
Das gerichtliche Verfahren kann mehrere Jahre dauern.
The court proceedings can take several years.
Certain verbs are important for correct usage. A company can 'beantragen' (apply for) or 'anmelden' (file for) insolvency proceedings. The court can 'eröffnen' (open) or 'einleiten' (initiate) them.
Die Baufirma musste letzte Woche ein Insolvenzverfahren anmelden.
The construction company had to file for insolvency proceedings last week.
The word belongs to a family of terms related to insolvency. These include the adjective 'insolvent' (insolvent/unable to pay) and the noun 'die Insolvenz' (insolvency itself).
Wenn eine Firma ihre Rechnungen nicht mehr bezahlen kann, ist sie insolvent.
If a company can no longer pay its bills, it is insolvent.
insolvency
'die Insolvenz' and 'das Insolvenzverfahren' are closely related, but they do not mean exactly the same thing. 'Insolvenz' describes the state: a person or company can no longer pay their debts, and this is legally established. 'Insolvenzverfahren' means the regulated process that follows or takes place around it, that is, the court proceedings with specific steps and rules. The words are easy to confuse because they often appear together in the news. Put simply: Insolvenz is the financial and legal situation; Insolvenzverfahren is the process that deals with it.
Am Montag beginnt das Insolvenzverfahren vor dem Gericht.
The insolvency proceedings begin in court on Monday.
Die Insolvenz des Unternehmens war für viele Mitarbeiter ein Schock.
The company's insolvency was a shock for many employees.