Insolvency creditors in Germany do not have much to fear from a harmonisation of avoidance actions in the EU. They are used to rigid statutory provisions.
European Union, Germany, Insolvency & Restructuring, CMS Germany, Insolvency, European Commission, Insolvency Regulation (1346/2000) (EU)
On 27 October 2011, the German parliament adopted the Law for Further Facilitation of the Restructuring of Businesses (Gesetz zur Erleichterung der Sanierung von Unternehmen, ESUG), which entered into force on 1 March 2012. In particular, legislators have increased the importance of debtequity swaps as part of this reform. Significant practical obstacles that previously often caused debt-equity transactions to fail have now been removed.
Previous legal framework
Germany, Banking, Capital Markets, Insolvency & Restructuring, CMS Germany, Shareholder, Debt, Articles of association, Bundestag