The Austrian "Chapter 11": Restructuring Proceeding with Self-Administration Under the New Austrian Insolvency Code

Austria has implemented radical changes to its insolvency law and introduced a new restructuring proceeding with self-administration (Sanierungsverfahren mit Eigenverwaltung) in its newly adopted Insolvency Code (Insolvenzordnung, or "IO").¹ One of the main features of the new type of insolvency proceeding is that the insolvent company (the "Debtor") largely remains in control of its business, but under the supervision of a restructuring administrator.

Step-by-Step Guide to the New Austrian Self-Administration Proceeding

The Austrian Insolvency Code sets forth the following applicable steps:

The Debtor (i) files an application to the insolvency court for the opening of restructuring proceeding with self-administration, and (ii) submits, along with a number of other documents, a restructuring plan (Sanierungsplan) that offers a recovery rate of at least 30 percent, payable to the creditors over a maximum period of two years.