Draft law for a new German preventive restructuring regimeOn Friday 18 September 2020 the German Federal Ministry of Justice published draft legislation which has the potential of fundamentally changing the restructuring landscape in Germany.
An essential part of the law is the introduction of a corporate stabilisation and restructuring regime, which establishes a comprehensive legal framework for out-of-court restructurings in Germany on the basis of the EU Restructuring Directive of 20 June 2019 (Directive (EU) 2019/1023) (the Preventive Restructuring Framework).
In addition to several other legislative amendments, the law contains amendments to the German Insolvency Code, which also stem from the results of an evaluation of the Law on the Further Facilitation of Restructurings of Corporate Enterprises (ESUG) published in October 2018. Moreover, the draft legislation includes amendments to the COVID-19 legislation (COVInsAG) enacted in the context of the outbreak of the COVID-19 pandemic.
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