Three years of “ESUG”: Wind of change or same procedure under new label? The German law to facilitate the restructuring of enterprises (“ESUG”) entered into force three years ago. Now several studies are at hand assessing the impact of this insolvency law reform in Germany. ESUG’s goal was not merely to modernise the insolvency regime in Germany generally, but was clearly focused on three goals:
(i) Enhancing the legal framework for debtor-in- possession proceedings (“DIP”),
(ii) granting more power and influence to the creditors, and
(iii) making the insolvency plan more efficient by introducing means for a debt-equity swap. This was aimed at bringing German insolvency law back on a level-playing field to other jurisdictions and avoid further forum shopping cases.
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