Introduction

With Directive (EU) 2019/1023, the European Union has created a uniform framework for pre-insolvency restructuring measures. The goal is to enable companies in financial difficulties to restructure at an early stage, thereby avoiding insolvency and preserving jobs. In Germany, the Directive was essentially implemented through the Act on the Stabilization and Restructuring Framework for Enterprises (StaRUG), which entered into force on 1 January 2021.

Objectives of the Directive and the German Legislator