In the Legal 500 Country Comparative Guide – Germany: Restructuring & Insolvency, our lawyers provide a concise overview of the key legal options for corporate restructuring in times of crisis, with a particular focus on cross-border issues.

German restructuring and insolvency law offers affected companies a wide range of tools that can be used before and after insolvency. The procedures provided for by law enable a close link between creditor interests, company continuation and liability avoidance.

This chapter explains, among other things:

• the restructuring options under the StaRUG, including the possibility of cross-class cram-down,
• court proceedings such as self-administration and protective shield proceedings, as well as the insolvency plan procedure as a central restructuring instrument in insolvency proceedings,
• the legally compliant structuring of collateral and refinancing, in particular with regard to risks of contestation,
• as well as requirements and liability risks for management in crisis situations.

The article is aimed in particular at internationally active companies, company management and creditors who would like to gain an initial overview of the legal framework in Germany.

The article was written by Dr Kirsten Schümann-Kleber, Dr Christian Bärenz, Dr Daniel Schmitz and Hendrik Boedewig (GÖRG).

Click here for the original text.