StaRUG: Act on the Stabilisation and Restructuring Framework for Businesses so-co-it.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from so-co-it.com Daily Mail and Mail on Sunday newspapers.
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A comprehensive change to German insolvency and restructuring law has become effective starting 1 January 2021. The change allows that a company s reorganization is possible without insolvency and includes the majority decision of its creditors.
In its final session in 2020, the German Bundestag passed the so-called Act on the Further Development of Restructuring and Insolvency Law (SanInsFoG), which will be applicable starting 1 January 2021. The law is based, among other things, on an EU directive that requires all member states to allow non-insolvency restructuring. The expected economic dislocations, as a result of the Covid-19 pandemic, have prompted German lawmakers to bring forward this legislative project and also create additional extensive mitigations for the economic consequences of the lockdown for companies.
Tuesday, January 26, 2021
A comprehensive change to German insolvency and restructuring law has become effective starting 1 January 2021. The change allows that a company s reorganization is possible without insolvency and includes the majority decision of its creditors.
In its final session in 2020, the German Bundestag passed the so-called Act on the Further Development of Restructuring and Insolvency Law (SanInsFoG), which will be applicable starting 1 January 2021. The law is based, among other things, on an EU directive that requires all member states to allow non-insolvency restructuring. The expected economic dislocations, as a result of the Covid-19 pandemic, have prompted German lawmakers to bring forward this legislative project and also create additional extensive mitigations for the economic consequences of the lockdown for companies.
January 14, 2021
In 2020, the COVID-19 pandemic taught the world another lesson about the unpredictability of life. Each country responded to the challenges posed by the pandemic in its own way. The German Government in its familiar technocratic and sober approach quickly unlocked massive financial resources to mitigate any immediate economic damage. It supported a further relaxation of the purse strings at EU level and put legislative acts in place that helped manage the uncertainty in the most affected industries for now. Hit by a second wave of the pandemic in an unexpectedly hard way, Germany is now left wondering whether the country really was smart in the spring or just lucky. The new year 2021 will provide the answer to this question.
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On 17 December 2020, the German Parliament passed the
Act on the Further Development of Restructuring and Insolvency Law
( SanInsFoG ), which is expected to lead to a fundamental
change in the restructuring landscape in Germany.
The SanInsFoG primarily serves to implement the EU Restructuring
Directive of 20 June 2019
(Directive (EU) 2019/1023) and aims at introducing a
comprehensive legal framework for out-of-court restructurings in
Germany (preventive restructuring framework). The centerpiece of
the SanInsFoG is the Act on the Stabilization- and Restructuring
Framework for Companies ( StaRUG ). Apart from that, the