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.
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.