To date, the German Insolvency Code (Insolvenzordnung) does not contain provisions governing group insolvencies. If several entities within a group of companies become insolvent, individual insolvency proceedings are opened and sometimes even individual insolvency administrators are appointed for each entity.

German proposals

This is the second part of a two-part article on ways to restructure debt taken up by a German company. The first part looked at financings governed by English law, this second part deals with German law-governed debt.

Part II – Financings governed by German law (restructuring through protective shield proceedings or schemes of arrangement)

This is a two-part article on ways to restructure debt taken up by a German company. The first part looks at financings under English law, the second refers to German law-governed debt.

Part I – Financings governed by English law (restructuring through schemes of arrangement)

In recent years a number of German companies such as Tele Columbus, Rodenstock and Primacom have used English law scheme of arrangements to restructure their debt.

An element of the restructuring toolbox