Supporting businesses in financial distress to avoid insolvency during the COVID-19 crisis

The slowdown of economic activity caused by the COVID-19 outbreak and related emergency measures implemented to tackle the health crisis have led to severe difficulties for companies to meet their financial obligations. Many of the fixed costs, such as rents and interest payments, remain due while the cash flow destined to meet these obligations has vanished. As a result, many otherwise sound companies are facing acute liquidity constraints that eventually might become solvency problems.