GERMAN INSOLVENCY LAW ENACTED
03 Mar, 2012
The new German Company Restructuring Facilitation Act comes into force today (March 1st 2012), after almost ten years of discussion and preparation with the aim of bringing the German system more in line with the popular UK system.
The Act – Gesetz zur weiteren Erleichterung der Sanierung von Unternehman (ESUG) – is a response to the major weaknesses of the previous German insolvency proceedings, has many benefits, namely improvements such as giving more influence to creditors on key decisions, facilitating self-administration and a new umbrella proceedings which will help with pre-packaged restructuring.
Germany is hoping that these changes will act as a way of attracting large companies to the country in order to restructure.
Find out more about the ESUG in April’s edition of Lawyer Monthly with an in-depth and exclusive interview with Schultze and Braun, one of Germany’s leading law firms.