StaRUG

StaRUG proceedings (restructuring proceedings under the German Act on the Stabilisation and Restructuring Framework for Businesses) are proceedings, not necessarily before a court, for preserving companies that are in economic difficulty but are still solvent. On the basis of a restructuring plan, and where appropriate with the support of a restructuring officer, such companies can in particular reorganise their liabilities (debt haircut) if a qualified majority of creditors agrees, the creditors are treated equally according to their rank and the measures are appropriate. In addition, enforcement measures against the company can be prohibited with the approval of the court. The proceedings can be conducted without publication.

The proceedings are intended to encourage companies to initiate the measures required to preserve the company themselves as early as the stage of imminent illiquidity, without having to go through court insolvency proceedings.