Meaning
Financial assessment standards used under German insolvency law determine whether a distressed company possesses a positive going-concern prognosis over a defined future period. These fortführungsprognose criteria require a structured analysis of both the company’s subjective willingness to continue operations and its objective survival capability. The analysis establishes whether a company must file for bankruptcy due to overindebtedness.
Financial Assessment
Financial restructuring professionals use detailed liquidity plans to build a realistic model of future inflows and outflows. In evaluating the fortführungsprognose criteria, advisors must demonstrate that the business remains fully funded for the next twelve months under a base-case scenario. This projection must account for planned operational changes and secured financing commitments.
If the model reveals an uncovered funding gap that cannot be closed, the prognosis is negative.
Insolvency Avoidance
Boards rely on these evaluations to avoid personal liability for delayed filings. Under the fortführungsprognose criteria, a positive outcome allows directors to continue restructuring efforts without immediate recourse to court proceedings.
Operational Horizon
The evaluation period focuses on the current and subsequent fiscal years to capture seasonal fluctuations in cash requirements. A negative fortführungsprognose criteria finding triggers a statutory obligation to file for insolvency within three weeks.
