The Restructuring Review: Germany

¹ Martin Tasma is a partner at and Moritz Müller-Leibenger is an associate at Hengeler Mueller.

² The PEPP is a temporary asset purchase programme of private and public sector securities recently increased by €600 billion to a total of €1,350 billion. All asset categories eligible under the existing asset purchase programme are also eligible under the new programme.

³ Data derived from the German Federal Statistical Office website, available via www.destatis.de.

⁴ Data derived from the German Federal Ministry for Economic Affairs and Energy, available via https://www.bmwi.de.

⁵ Data derived from the German Federal Statistical Office website, available via www.destatis.de.

⁶ Data and argument derived from the German Federal Statistical Office website, available via www.destatis.de.

⁷ Data derived from the German Federal Statistical Office website, available via www.destatis.de.

⁸ Data and argument derived from the German Federal Statistical Office website, available via www.destatis.de.

⁹ Information based on a survey of Deutscher Industrie- und Handelskammertag (DIHK) May 2020, available at https://www.dihk.de.

¹⁰ Information based on a survey of Finance magazine on the 16th Restructuring Barometer Spring 2020, available at https://www.finance-magazin.de/research.

¹¹ German insolvency law recognises an additional reason for the director to file for insolvency: imminent illiquidity. However, imminent illiquidity is not a mandatory reason for the director to initiate insolvency proceedings and its practical importance is low.

¹² Change of control clauses do not apply if contracts are transferred under a plan.

¹³ The structuring of reorganisations via an insolvency plan is complex and requires corporate, insolvency and tax expertise, in particular, since DES/haircuts generally create taxable restructuring gains on part of the debtor that may qualify as claims against the estate and which may impede the entire restructuring.