The Restructuring Review: Germany

Footnotes

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.

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