Reorganization options and preventive restructuring framework (StaRUG)

There are various options for avoiding insolvency proceedings. In addition to traditional restructuring negotiations or restructuring moderation, the legislator provides for the German Corporate Stabilization and Restructuring Act (StaRUG). The aim is to eliminate insolvency risks and restructure the accumulated debt burden outside of insolvency proceedings.  The company can be restructured in court but before it is obliged to file for insolvency.

The core of this pre-insolvency procedure is the restructuring plan. It is drafted together with the company and negotiated with the parties involved. This restructuring plan implements the negotiated key points of the restructuring by way of a contract and, in particular, outside of insolvency.

The earlier the better.

The StaRUG requires measures for early risk identification and offers instruments for crisis management. If action is taken in good time, the threat of insolvency can be averted. 

Who is eligible to use this procedure?

In principle, the StaRUG is open to any company. However, individuals are only eligible if they run a sole proprietorship. Companies in the banking and investment services sector are also excluded. 

Advantages and limits of the StaRUG.


  • With the notification of the restructuring project, the obligation to file for insolvency is suspended. However, in the event of illiquidity or over-indebtedness, there is an obligation to notify the restructuring court.
  • Debtors can apply for enforcement and stays on enforcements. 
  • Majority decisions can be made in the restructuring plan if creditors representing 75% of the claims give their consent.
  • The restructuring court can replace the approval of a dissenting group under certain conditions if the majority of the groups approve the plan (cross-class cram down).


  • The restructuring plan cannot terminate any continuing obligations, such as leasing or rental agreements.
  • Claims from employment relationships or company pension schemes cannot be restructured by means of a restructuring plan.

Our services.

We provide you with an overview of the appropriate restructuring options. We decide together which strategy to pursue. We support you with advice and operational assistance throughout the entire process. Especially, when it comes to drawing up the restructuring plan.  The following shows our years of experience from many completed restructurings. 

Our expertise.

In our law firm we take court appointments as insolvency administrators and cover all aspects of insolvency and law. Our business advisory firm focusses on re-organization scenarios. Thanks to our hybrid set-up as a restructuring consultancy and insolvency law firm, we always keep an eye on all restructuring options. This enables us to provide you with comprehensive advice to help you and your company emerge from the crisis. 

We have in-depth experience from a wide range of sectors and industries – from start-up companies to airports.

Our partners are founding members of “Forum 270 – Quality and Responsibility in Self-Administration e.V.”. The association is committed to the standardization of insolvency proceedings in self-administration. Based on the experience of numerous insolvency practitioners, Forum 270 has developed principles for the successful implementation of self-administration proceedings.

You will work with a team that is tailor-made for you.

If insolvency is the necessary restructuring instrument, we will assist you in drawing up an insolvency plan.

What are the major steps in the procedure?

An impending crisis is identified through early crisis detection.

In suitable cases, the StaRUG allows restructuring facilitation, meaning negotiations between the debtor and other stakeholders under the supervision of a court appointed moderator. This can be the quickest way to reach a restructuring settlement with the financing parties.

If a restructuring plan becomes necessary, it can be agreed out of court or in court. In these cases, the company sends the restructuring plan to the court, if necessary, and submits the restructuring plan to the parties affected by the plan.

A hearing to discuss and vote on the plan is held in which the plan participants vote on the plan-offer in groups. If the required majorities are reached, the restructuring court can confirm the plan and the measures come into force. Two weeks after confirmation, the plan becomes legally binding.

Current legal situation.

EU Directive 2019/1023 on preventive restructuring frameworks of June 20, 2019, implemented in German legislation in the StaRUG through the Act on the Further Development of Restructuring and Insolvency Law (SanInsFoG) since January 1, 2021.

Your contacts

Other services of Anchor Lawyers