Stabilisation and restructuring frameworks
for companies (StaRuG)

The tool kit of corporate reorganisers has again been considerably expanded by having the Act for the Further Development of Reorganisation and Insolvency Law (SanInsFoG) go into effect and its centrepiece, the Corporate Stabilisation and Restructuring Act (StaRuG). The so-called “Restructuring Frameworks for Companies”, which has been made available by the StaRuG, should close the regulatory loophole between corporate reorganisations being privately performed autonomously and court-accompanied insolvency proceedings (with all of its variations such as personal management and insolvency plan proceedings).

The instruments of the restructuring framework are available to any company facing the threat of the inability to pay (however, not by a company that already has the inability to pay or is overindebted). In particular, the liabilities of the debtor including collateral and also the ownership structure of the company in debt can be restructured through a restructuring plan. Restructuring proceedings can be implemented with or without involving the court, however court involvement offers the company being reorganised more legal certainty.

The consequence of restructuring proceedings requiring the submission of a restructuring plan and a restructuring concept is firstly that the bookkeeping and the financial statements must be up-to-date and have been presented in a meaningful form and secondly that a forward-looking business concept including the required income, asset and liquidity planning must already have been drawn up.

Our experts can support you concerning the issue of whether restructuring proceedings would open up appropriate and economically viable possibilities for finding solutions to the specific problems in question. Should restructuring proceedings in accordance with the StaRuG be implemented, we can support you by preparing a restructuring plan and are at your disposal for any questions about the proceedings. We can assist you in fulfilling the statutory obligations, in particular the duty of management to monitor any possible indications requiring a filing for insolvency. We can work with you to manoeuvre your way through the difficult waters of the new complex legal regulations.