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.