With effect as of March 1, 2012, German insolvency law will be reformed by a bill (the "Bill") that will considerably facilitate in-court restructurings of distressed companies, provide new opportunities for creditors and debtors and will also affect the position of shareholders. The Bill applies to insolvency proceedings based on insolvency filings made on or after March 1, 2012. All other insolvency proceedings will continue to be governed by the existing legal regime. The following summary provides an overview of the background and the major amendments made by the Bill.
View full memo: Reform of In-Court Restructurings in Germany