The Act on the Stabilisation and Restructuring Framework for Businesses (Unternehmensstabilisierungs- und restrukturierungsgesetz, StaRUG) will enter into force as originally scheduled on 1 January 2021, after having been under consideration for just 13 weeks. This past week, both the Bundestag and the Bundesrat approved the Act on the Advancement of Restructuring and Insolvency Law (Sanierungs- und Insolvenzfortentwicklungsgesetz, SanInsFoG), of which the StaRUG is a part. The draft went through a last round of significant changes in several respects prior to the decisive readings. The main point of contention was the ability to alter ongoing contracts. This tool has been removed in its entirety.

We have summarised the other changes for you in this newsletter.