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 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.