Vol 22 (2025) - Issue 4

Article preview

Are Non-EU Preventive Restructuring Plans Effective in Germany?

Synopsis
The German legislator implemented the 2019 Restructuring Directive by creating the StaRUG preventive restructuring proceedings. Unfortunately, the StaRUG does not feature a cross-border chapter. This has led to legal uncertainty about the ability of German courts to sanction German restructuring plans, which impair foreign law governed debt, and to recognise such modifications in foreign restructuring plans. This article focuses on the latter issue but also explains why the gap exists at all. It intends to demonstrate why it is very likely that German courts will give effect to foreign restructuring plans even before the German legislator would add a cross-border chapter to the StaRUG.