{"id":29483,"date":"2024-02-28T10:59:04","date_gmt":"2024-02-28T09:59:04","guid":{"rendered":"https:\/\/www.anchor.eu\/?post_type=services&p=29483"},"modified":"2026-08-31T15:32:28","modified_gmt":"2026-08-31T13:32:28","slug":"reorganization-options-and-preventive-restructuring-framework-starug","status":"publish","type":"services","link":"https:\/\/www.anchor.eu\/en\/services\/reorganization-options-and-preventive-restructuring-framework-starug\/","title":{"rendered":"Reorganization options and preventive restructuring framework (StaRUG)"},"content":{"rendered":"\n

Since the preventive restructuring framework came into force with the Corporate Stabilization and Restructuring Act (StaRUG) in January 2021, the German legislature has been offering crisis-stricken companies a new option for averting impending insolvency. The StaRUG implemented the EU-Directive  2019\/1023 on preventive restructuring frameworks into German law.  The StaRUG procedure is distinguished from out-of-court restructuring and insolvency proceedings by its legally defined options. As experienced restructuring experts with business and legal expertise, Anchor’s specialists are the right people to contact for timely and targeted StaRUG advice.<\/p>\n\n\n\n

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StaRUG offers struggling companies the chance to restructure without insolvency proceedings.<\/h2>\n\n\n\n

By now, the StaRUG procedure is a well established tool in the restructuring tool-box. It is generally regarded as a flexible, legally secure, and versatile restructuring tool. The core idea behind StaRUG is the independent, early restructuring of companies threatened with insolvency. In contrast to other procedures, some of the restructuring measures can be implemented without the consent of all creditors, because restructuring can proceed as planned if a majority of 75% of the creditors included in the restructuring plan agree. StaRUG thus closes a gap in German restructuring law that existed until 2021 between out-of-court restructuring and restructuring in insolvency proceedings.<\/p>\n<\/div>\n<\/div>\n\n\n\n

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Who is the target group of the StaRUG?<\/h2>\n\n\n\n
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The central guiding principle of the StaRUG is preventive restructuring. This determines the target group: companies that show clear signs of crisis but are still solvent. Insolvent companies are therefore not included in the StaRUG target group.<\/p>\n\n\n\n

In principle, the StaRUG applies to companies from all sectors. The size and legal form of the company are also of secondary importance. The affected company must simply be capable of restructuring and its viability must be restored through the restructuring plan.<\/p>\n<\/div>\n<\/div>\n\n\n\n

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When and for whom is the StaRUG procedure available?<\/h2>\n\n\n\n

The StaRUG is primarily intended for companies in economic crisis. Ideally, this crisis should not consist of strategic or operational challenges, but should be primarily financial in nature. However, the company must not yet be insolvent.<\/p>\n\n\n\n

StaRUG advice is only possible if it is foreseeable that insolvency will occur within the specified forecast period of 24 months. A prerequisite for successful restructuring under the StaRUG is a sustainable business model, competitive services or products, qualified personnel, and a fundamentally positive network of customers, investors, suppliers, and business partners.<\/p>\n<\/div>\n\n\n\n

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Thanks to the preventive approach\u2014a key difference from insolvency proceedings\u2014the company can ideally be stabilized without much publicity at an early stage, averting insolvency and some of its negative side effects.<\/p>\n<\/div>\n<\/div>\n\n\n\n

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What are the advantages and limitations of the StaRUG procedure?<\/h2>\n\n\n\n
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Benefits<\/strong><\/p>\n\n\n\n