By the Insolvency Law
Amendment Act
(“Insolvenzrechtsänderungsgesetz
2010, IRÄG 2010”), the
Bankruptcy Act
(“Konkursordnung”) has been
amended fundamentally with
regard to a better reorganisation
of companies true to the slogan
“saving instead of ruining”. It
introduces uniform insolvency
proceedings, which can be held as
reorganisation proceedings (also
with self-administration by the
debtor) or bankruptcy proceedings.
The new reorganisation plan
(“Sanierungsplan”) replaces the
composition proceeding
(“Ausgleich”) and the former
reorganisation proceeding
(“Zwangsausgleich”). Innovations
try to preserve important
contractual relations for the
continuance and reorganisation of
companies. The amendments by
IRÄG are, with exceptions,
applicable to all insolvency
proceedings started after 30 June
2010.
In the following, a short
overview of the amendments by
IRÄG 2010 is presented.
