On 1 January 2021 the new German stabilizing and out-of-court restructuring regime came into effect. The “Stabilization and Restructuring Framework of Companies Act”, known as StaRUG, heralds a new phase in the German restructuring landscape, introducing a framework of tools including a new restructuring plan, which will enable debtors to restructure and cram down minority creditors outside of German insolvency proceedings for the first time.
Consequently, the new law is being considered a long awaited step towards bringing German restructuring tools closer to the English scheme of arrangement and Chapter 11 plan of reorganisation.
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