In force since January 01, 2021
New restructuring law and reorganization
Active crisis management by management now mandatory!
Statistics revealed it long ago, the legislator had last improved with the so-called ESUG and now responded with the Act on the Stabilization and Restructuring Framework for Companies (Corporate Stabilization and Restructuring Act - StaRUG), which came into force on January 1, 2021; herein, mechanisms for early risk detection and special obligations of managers / directors in the event of corporate crises have been made mandatory.
In future, the occurrence of imminent insolvency will oblige managing directors and board members (managing directors) to safeguard the interests of creditors. If there is a threat of insolvency, the management has three obligatory options for action: free reorganization, preventive restructuring framework and insolvency proceedings/insolvency plan proceedings. Simply doing nothing can lead to personal liability for the managing directors!
Furthermore, the new law has introduced the so-called restructuring plan, a reorganization instrument modeled on the insolvency plan that has already proven itself in practice. Almost all liabilities of the debtor company can be included in this plan, which has the character of a settlement. This newly created legal framework now enables companies to reorganize on the basis of a restructuring plan accepted by the majority of creditors.
CausaConcilio accompanies you in the stabilization and restructuring process
The negotiations necessary for reorganization can be supported by judicial measures within the framework of the judicial stabilization and restructuring process. As part of the judicial support of the process, the reorganization is supervised by a court-appointed structuring agent, who accompanies and monitors the restructuring negotiations to ensure that the interests of all affected creditors are safeguarded.
Even before the court-ordered stabilization and restructuring framework is initiated, the court may appoint a restructuring facilitator whose task is to reach a restructuring settlement with the creditors. By bringing forward binding obligations of the management to the phase of already imminent insolvency, the opportunity can be opened to reorganize companies in crisis. Seizing this opportunity for reorganization has now become obligatory. We would be pleased to assist you and your company in this process - our insolvency law team will be happy to support you.