Looking back at the last few months, the COVID-19 pandemic has hit many companies hard and amplified disruptive trends in various sectors. In addition to other measures to address COVID-19 impact on businesses, Germany has made significant progress toward international best practices for restructuring: StaRUG — known as the German scheme — came into effect on 1 January 2021, as one of the most modern restructuring laws in the world. But how will StaRUG help German companies survive the crisis and what if insolvency is unavoidable?

Through implementing the EU Restructuring Directive, German restructuring and insolvency law will be modernized, more effective, and enriched by new instruments.

Durch die Umsetzung der EU Restrukturierungs-Richtlinie soll das deutsche Sanierungs- und Insolvenzrecht modernisiert, effektiver gestaltet und um neue Instrumentarien bereichert werden.

The Ontario Court of Appeal, in 7636156 Canada Inc. (Re), 2020 ONCA 681 (“7636156”), recently affirmed the autonomy of documentary letters of credit as valid security for the obligations of a tenant under a commercial lease when that lease is disclaimed by the tenant or the tenant’s trustee in bankruptcy.

Regierungsentwurf setzt EU Restrukturierungs-Richtlinie um und führt neues Sanierungsinstrumentarium ein.

Government draft of law implements EU Restructuring Framework, and introduces new restructuring instruments.

Dans l’affaire de la Loi sur les arrangements avec les créanciers des compagnies (la « Lacc ») relative à Groupe Dynamite, le juge Kalichman de la Cour supérieure du Québec prononce un jugement au sujet de l’obligation d’un débiteur de payer un loyer post-dépôt dans un contexte où il ne peut pas utiliser les lieux loués.

Successfully executing an acquisition from stress, distress, or insolvency requires a creative approach to reconcile competing interests.

In the matter of the Companies’ Creditors Arrangement Act (“CCAA”) of the S.M. Group, the Québec Court of Appeal rendered a ruling on the effect of the law of set-off on debts arising out of alleged fraud and the application of the same Court’s ruling in Kitco to this type of debts.

As a result of the legal amendments on German tenancy law that were passed in March 2020 in connection with the COVID-19 pandemic, landlords are not allowed to terminate lease agreements for default of rental payments occurring in the period from April 1 to June 30, 2020, until June 30, 2022, if those defaults result from the COVID-19 pandemic.