Clifford Chance
Draft Act for an Insolvency Law Reform
5 April 2011
On 23 February 2011, the German Federal Government (Bundesregierung)
published the first draft of a new act to facilitate the restructuring and the reorganisation of enterprises (Gesetzesentwurf zur weiteren Erleichterung der
Sanierung von Unternehmen) ("Draft Act") which will be discussed in the
German Parliament shortly.
According to the German Federal Government, the purpose of the Draft Act is to
improve the prospects of a successful restructuring process, to involve the
debtor and the creditors in the selection process of the (preliminary) insolvency
administrator and to improve the reliability and predictability of insolvency
proceedings. The Draft Act also attempts to expand the opportunities for the
reorganisation of an insolvent debtor in so-called insolvency plan proceedings
(Insolvenzplanverfahren) and to reduce the number of possible appeals in such
proceedings.
