The Coronavirus (COVID-19) pandemic has had a huge impact on the global economy and most businesses, creating thousands of companies with urgent restructuring needs. Restructurings are ideally carried out early, quietly, and quickly. Efficient tools for out-of-court restructurings play a decisive role in value-preserving restructurings, but every jurisdiction has slightly different rules. This Special Report takes a look at the regulations that apply in the European Union, Germany, and the United States.

EUROPEAN UNION -

On 26 June 2019, the European Union issued new EU Directive 2019/1023 on preventive restructuring frameworks, discharge of debt and disqualifications, and measures to increase the efficiency of procedures concerning restructuring, insolvency and discharge of debt (the Directive). EU Member States must implement the Directive by 17 July 2021. In light of the COVID-19 pandemic, many Member States, including Germany, are trying to implement the Directive much earlier...