The preventive framework provided by the Act on the Stabilisation and Restructuring Framework for Businesses (StaRUG) allows companies to restructure at an earlier stage, thus avoiding the negative stigma of filing for insolvency. We specialise in efficiently and confidentially structuring tailored StaRUG proceedings that are resistant to clawback attempts, together with financing and governance solutions to stabilise your business over the long term.
Your challenges
Our solutions
- Eligibility check (Section 29 StaRUG), crisis assessment and early warning system (Section 1 StaRUG)
- Definition of the class of creditors (Section 7 StaRUG) and formation of groups (Section 9 StaRUG)
- Plan structure: haircut, maturity extension and debt-to-equity swap (Section 2(2) StaRUG)
- Cross-class cram-down (Section 26 StaRUG) and anti-obstruction rules
- Stabilisation measures (moratorium, Sections 49 et seq. StaRUG)
- Plan certainty, protection against clawback challenges and enforcement certainty (Sections 60 and 63 StaRUG)
- Valuation report/IDW S1 and fairness opinion
- Coordination with bond and promissory note forums (German Bond Act (SchVG))
- Communication strategy and confidentiality management
- Overlap with the German Insolvency Code (InsO) and tax legislation; state aid checks in the case of public funds