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 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 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.