Germany: Financial Restructuring

Debt-to-equity swaps offer distressed companies a path to financial recovery by converting creditor receivables into equity, but they carry significant valuation risks that can expose new shareholders to unexpected liabilities. This analysis examines the legal framework governing these complex restructuring instruments in Germany, including insolvency plan proceedings and StaRUG restructuring procedures. Understanding the critical risk factors and implementation strategies is essential for creditors, distre

Companies facing financial distress must carefully evaluate their restructuring options, with protective shield proceedings offering a unique opportunity to prepare an insolvency plan while maintaining existing management. This specialized form of preliminary self-administration requires precise timing and thorough preparation, as it is only available when a company faces imminent illiquidity or over-indebtedness but has not yet become actually illiquid.

CEOs and their executive teams face a critical misalignment in assessing market pressures, creating governance challenges that demand a fundamental rethinking of portfolio management. This article examines why the traditional sequential approach to evaluating underperforming business units destroys value and presents a concurrent decision framework that treats fix, sell, and close options as simultaneous strategic choices rather than a process of elimination.

After several years of weak growth in the German economy, restructuring is emerging as a strategic tool to revitalize the country's under-pressure businesses.

Restructuring & Insolvency Comparative Guide for the jurisdiction of Germany, check out our comparative guides section to compare across multiple countries

Alvarez & Marsal's Restructuring team hosted a webinar, where we presented findings from our latest EMEA A&M Distress Alert and discussed the key developments in the distressed and restructuring market in 2025.

In solchen Sondersituationen müssen Unternehmen schnell erfolgskritische Positionen besetzen und handlungsfähig bleiben. Interim-Manager übernehmen hier eine Schlüsselrolle...

Trade credit insurances play a vital part in corporate finance in the German market. Yet the important role of credit insurers in restructuring scenarios is underestimated by many companies and their advisors.

After many had proclaimed the German StaRUG to have failed as an effective preventive restructuring regime, there appears to have been a recent increase in cases.