What financial aspects play a role in choosing between the ESUG and the StaRUG?
In a state of imminent illiquidity, the instruments of the ESUG (the German act facilitating the restructuring of companies) offer measures that generate liquidity in the opening phase of insolvency proceedings. The StaRUG (the German Act on the Stabilisation and Restructuring Framework for Businesses), on the other hand, does not provide for such a release of liquidity. The choice between the procedures therefore also depends on the liquidity available to the company.
