A draft bill published on 19 September 2020 intends to further develop the existing restructuring and insolvency law in Germany.

It includes fundamental amendments to German insolvency and restructuring law to stabilise the restructuring of businesses. It also ratifies the Directive (EU) 2019/1023 of the European Parliament and of the Counsel 20 June 2019 on restructuring and insolvency into German national law. The draft bill will come into force on 1 January 2021.

What does this mean for debtors and creditors?