Act on time and avoid insolvency.
The law on the stabilization and restructuring of enterprises (StaRUG) has only been available as a draft law so far; here you can find a brief summary of the essential elements of the law (in German language only). The goal of the law, with which the EU restructuring directive is to be implemented, is to create a preventive stabilization and restructuring framework in order to enable companies to cope with the crisis in good time before insolvency and thus to avoid insolvency proceedings at an early stage.
The main instrument of the preventive stabilization and restructuring framework is the restructuring plan, which, among other possibilities, enables considerable cuts in the rights of creditors, but also in the rights of shareholders, and thus enables the long-term adjustment of over-indebtedness in the balance sheet. The restructuring plan is supplemented or in some cases even made possible by court orders, e.g. a so-called stabilization order, which prevent threatened foreclosures and even proactively avoid the collection and utilization of security rights of individual creditors in order to keep the company’s substance together.
Our lawyers and consultants have been dealing with the restructuring of companies in crisis for years. We use a wide range of experience with insolvency plans and in dealing with the various groups of creditors in the restructuring process in order to develop the best possible solutions in the interests of all parties and to achieve success in negotiations.