The future of corporate reorganisation without insolvency risk through the German Corporate Stabilisation and Restructuring Act (StaRUG)

Reorganisation and restructuring outside of insolvency proceedings means reaching an agreement on the implementation of restructuring measures (e.g. debt settlement, corporate structures) with the parties involved. A consensus with all stakeholders is ideal for this, but not always achievable in practice.

In the event of imminent illiquidity, the German Corporate Stabilisation and Restructuring Act (StaRUG) offers the possibility of a mostly silent (non-public), rapid and focused restructuring by means of a restructuring plan that can be adopted and implemented by a qualified majority decision of the parties involved. Even if there is no general consensus, it is now possible to coordinate restructuring measures and implement them promptly and with legal certainty within a regulated procedural framework. The scope of the possible measures under the StaRUG can be customised to the restructuring situation. This closes a gap between out-of-court reorganisation and insolvency proceedings.

As active restructurers, we are familiar with the reorganisation measures that can be useful and reasonable in addition to StaRUG proceedings in order to achieve a holistic restructuring that prevents insolvency. We can rely on our extensive experience in both out-of-court restructuring and insolvency proceedings.

The special features of reorganisation under the Preventive Restructuring Framework (StaRUG)

• Special restructuring framework for the implementation of reorganisation measures by majority decision of the parties involved
   
• Largely customisable and minimal court involvement
   
• In the absence of consensus, faster and with more legal certainty than out-of-court reorganisation, but at the same time less drastic than insolvency proceedings