According to the current planning, Germany will have one of the most modern restructuring frameworks (StaRUG) outside insolvency within Europe from January 1, 2021. With the new StaRUG, German companies could finally be restructured with an internationally competitive majority driven restructuring plan ("Scheme") outside an insolvency proceeding. The StaRUG creates a framework for non-insolvency restructuring, which enables companies to restructure on the basis of a restructuring plan adopted by a majority of creditors. Thus the law closes the gap between an out of court consensual restructuring and a restructuring in an insolvency proceeding by the use of self-administration with an insolvency plan or an asset sale. The webinar will present the innovations and restructuring tools of the new German restructuring law. Two presentations from Max Pluta and Ivo Willrodt from PLUTA showing, how these tools will work and fit into the already existing German legal restructuring toolbox. In particular this will be:
• the new debtor controlled modular procedures,
• the restructuring plan with cross-class cram down,
• the stabilization options with a Moratorium (automatic stay)
• the contract termination option
• the financing (Safe Harbour)
• the dual approach of international recognition
• possible liability issues of the directors
• the chronological timeline of actions
After the presentations, the new German framework and how it compares to the situation in the US and UK will be discussed with Mark Fry, Partner of Begbies Traynor and Ian Ratner, Co-Chief Executive Officer of B. Riley Advisory Services. The group will also discuss how their firms collaborate on international mandates and the restructuring environment in their countries at this time.
