On February 23, 2021, the ministerial draft of the Restructuring and Insolvency Directive Implementation Act (RIRL-UG) was sent for review. This is intended to create a Restructuring Regulations (ReO) and to change the Insolvency Regulations (IO).

The new federal law is scheduled to come into force on July 17, 2021 and will significantly expand the current options for debt relief for companies that have fallen into a financial crisis.

The RIRL-UG is intended to implement the EU Directive on Restructuring and Insolvency, (EU) 2019/1023. The aim is to create a Europe-wide harmonized preventive restructuring framework that will enable viable companies to restructure themselves through a judicial, pre-insolvency restructuring process in order to limit unnecessary liquidations.

 

In Part I of our newsletter we give you one Overview of the most important aspects of the ministerial draft. In Part II, which will follow shortly, you will find information on all further (content) details, in particular on the restructuring plan.

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