SanierungsBerater-Online 04/2020: The SanInsFoG has been passed
On December 17, 2020, the Bundestag passed the SanInsFoG. On January 1, 2021, the law, which will permanently change the restructuring and reorganization industry, is to come into force. In its latest issue, SanierungsBerater-Online takes an in-depth look at the new law and considers the various aspects.
In an introductory article, SanierungsBerater-Online not only highlights the components and the development of SanInsFoG, but also allows prominent voices such as Prof. Dr. Lucas F. Flöther and Burkhard Jung, partner and managing director of Restrukturierungspartner, to have their say. In short statements, the experts make clear that practice will show whether the new restructuring tools prove their worth and where improvements need to be made.
The article also discusses the stabilization and restructuring framework for companies (StaRUG) and the renewed suspension of the obligation to file for insolvency.
Insolvency
Dr. Stefan Weniger, partner and managing director of Restrukturierungspartner, writes about the effects of the SanInsFoG on self-administration in his article “Dauerbaustelle Insolvenz: Neue Hürden für die Eigenverwaltung“.
Read more in a short excerpt:
With the Act on the further development of restructuring and insolvency law (SanInsFoG), the German government has not only taken up the directive of the European Parliament and of the Council of June 20, 2019 on the preventive restructuring framework and regulated it in a new law, the act on the stabilization and restructuring framework for companies (“StaRUG“). The SanInsFoG, which was passed in its 3rd reading on December 17, 2020, also implemented some of the Commission's proposals for evaluating the act to further facilitate the restructuring of companies of December 7, 2011 (ESUG). The latter are somewhat overshadowed by the public discussion, as the novelties of the StaRUG naturally attract increased attention. Nevertheless, the following section will focus on the changes relating to self-administration. These are extensive and will lead to a significant change in the importance of self-administration as a restructuring instrument in restructuring practice. The provisions on self-administration in the Insolvency Code continue to be found in the amended version of section 270 InsO. A fundamental distinction is made between provisional self-administration proceedings pursuant to section 270c InsO n.F. and the preparation of a reorganization pursuant to the amended version of section 270d InsO (“shield“).
According to the previous regulation, the order of self-administration merely requires that it is applied for by the debtor and that no circumstances are known that the order will lead to disadvantages for the creditors. This low entry requirement is now being tightened significantly. According to the law passed by the German parliament, the debtor must attach a self-administration plan (section 270a InsO n.F.) to the application for self-administration. This comprises a number of documents, the existence of which is to form the basis for proper self-administration.
Excerpt from: SanierungsBerater-Online 04/2020
You will find the entire article starting on page 6 in the magazine; a download link can be found in our download area. Enjoy reading!