The new Act on the Stabilization and Restructuring Framework for Companies

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 legislator has also used the SanInsFoG to adopt amendments, among others, to the Insolvency Code and the COVID-19 Insolvency Suspension Act ("COVInsAG"). Our White Paper focuses on the StaRUG which has, in significant parts, already entered into force on 1 January 2021.