Restructuring Framework for Businesses (StaRUG)

The European Directive passed by the European Parliament on 20 June 2019 governing preventive restructuring frameworks and the evaluation of the Act to Simplify the Restructuring of Businesses (ESUG) adopted by the German Bundestag in 2011 triggered further development and amendment of restructuring and insolvency law in Germany. The requirements of the directive for preventive restructuring frameworks have been implemented in the Act on the Stabilisation and Restructuring Framework for Businesses (StaRUG). This means that since January 2021 German businesses are able to use a restructuring framework as a basis for successful pre-insolvency restructuring using a cross-class cram-down mechanism, a moratorium and other restructuring tools. This act places Germany in a competitive position when it comes to the restructuring of businesses.

Thanks to our international network and expertise, we are able to advise international enterprises and stakeholders with regard to all newly implemented restructuring frameworks in the European Union. Below you will find different information concerning other restructuring frameworks in Europe based on aforementioned directive, such as the so-called Dutch Scheme or the recently introduced new proceedings in Spanish restructuring law.