Introduction - The German Perspective on Restructuring
In a comparative context the German approach to preventive restructuring seems to be conservative. Effectively there is no preventive restructuring framework available in Germany but the description of German insolvency procedures to this effect seems to rely on the dividing line of declared insolvency. In effect there is no rescue process available before a declared insolvency but post a declaration of insolvency the legislative framework does provide for a restructuring process. Once the debtor files for insolvency under the Insolvenzverfahren the restructuring or rescue process is available. The Insolvenzverfahren is included in the EIR Recast. German law allows for a restructuring plan to be approved despite the objections of an entire class, so this would indicate that cross-class cram-down is permitted weighed against criteria applied by the court.