New restructuring guidelines

As a result of the fight against the global corona pandemic, many companies in Germany and neighbouring European countries have suffered economic hardship. As early as 2019, the Council of the European Union has passed a new restructuring directive, which is to be implemented by EU countries at national level by 2021 - this is also of great importance for the post-coronavirus period. The restructuring directive aims to put companies that are close to, but not yet, insolvent into a position in which they can survive. In this way, jobs are also to be secured. The advantage of the new directive is that creditors can be overruled in certain situations. In addition, the company concerned should be able to apply for a moratorium in court, which gives time for the development of a restructuring plan. Dr Andreas Walter, lawyer and partner at Schalast & Partner, and lecturer for banking law and civil law the Frankfurt School of Finance & Management, explains the background in detail in the video (in German).