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Ashurst Boosts German Disputes Division with Frankfurt Partner
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Ashurst Bolsters European Corporate Practice with Paris Partner Hire
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New restructuring law in Germany could bring advantages for investors
Out-Law News | 23 Dec 2020 | 11:46 am | 1 min. read
New laws set to come into force in Germany in January will give investors greater influence over restructurings at businesses they finance, according to legal experts.
The German parliament (Bundestag) has passed a law to reform the legal framework for corporate restructuring in Germany. It will come into force in January, provided the Federal Council (Bundesrat) does not object.
Olivia Irrgang, an expert for private equity and venture capital at Pinsent Masons, the law firm behind Out-Law, said: This development creates opportunities for companies to implement restructuring concepts without filing for insolvency and carrying the burden of reputation damages and uncontrolled decisions of a third party insolvency receiver. This opens up new opportunities for financial investors: They can link the continuation of financing to a restructuring plan th
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