Clifford Chance
Reform Act on German Insolvency Law
2 January 2012
On 1 March various changes to insolvency law which aim to facilitate the restructuring of operating companies will enter into force. Stefan Sax, partner in the restructuring group in Frankfurt, comments "The purpose of the reform is to improve the prospects of a successful restructuring process, to involve creditors in the selection process of the (preliminary) insolvency administrator and to improve the reliability and predictability of insolvency proceedings. The reform also attempts to expand the opportunities for the reorganisation of insolvent debtors through insolvency plan proceedings and to limit the effects of potential appeals against such plans. The changes are an important development in promoting Germany as a place where complex restructurings can be achieved." The German government also intends to implement further changes to consumer insolvency proceedings and group insolvencies. These are beyond the scope of this briefing.
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Reform Act on German Insolvency Law
