StaRUG Blog

On 1 January 2021, the StaRUG, which goes back to an EU directive, came into force and wants to provide a `second chance for businesses. The abbreviation stands for 'Unternehmensstabilisierungs- und –restrukturierungsgesetz' ('Corporate Stabilisation and Restructuring Act').

With this overview, we want to provide you with a high-level overview of the StaRUG on the following main issues:

The StaRUG provides for a so-called stabilisation order to make it easier for companies to restructure. This is also referred to as a moratorium. We explain the requirements and consequences.

The legislator has reformed the liability of managing directors and other executives from the time of insolvency. The new regulations came into force at the same time as the StaRUG on 1 January 2021.

The restructuring plan is the central element of StaRUG. The non-public restructuring procedure gains attractiveness in particular by the fact that the involvement of the restructuring court is possible, but not mandatory. Find out more about the restructuring plan here.

In a crisis, the so-called restructuring moderation of the StaRUG is particularly suitable for small companies. We explain how it works and when it makes sense.

In certain cases, company reorganisations under the StaRUG are accompanied by a so-called restructuring practitioner. This article provides an overview of the main rules on restructuring practitioners.