The new German stabilizing and out of court restructuring regime came into effect on 1 January 2021. The “Stabilization and Restructuring Framework of Companies Act”, known as StaRUG1 , 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.
