Share on LinkedInShare on LinkedIn

ARTICLE · 30 MAY 2023

German Insolvency Law

Mayer Brown
Mayer Brown
Contributor
Mayer Brown

Mayer Brown

Mayer Brown is a leading international law firm positioned to represent the world’s major...

View firm profile
Explore more from Mayer Brown

Historically, the objective of the proceedings provided by the Insolvency Code (Insolvenzordnung, InsO) or its predecessor, the Bankruptcy Code (Konkursordnung, KO)...

GermanyInsolvency/Bankruptcy/Re-Structuring
Dr. Marco Wilhelm
Dr. Marco Wilhelm
Dr. Malte Richter, LLM
Dr. Malte Richter, LLM
Stefanie Skoruppa
Stefanie Skoruppa
Tina Hoffmann
Tina Hoffmann
Inga Rupp
Inga Rupp
Author LinkedIn connections

OBJECTIVE

Historically, the objective of the proceedings provided by the Insolvency Code (Insolvenzordnung, InsO) or its predecessor, the Bankruptcy Code (Konkursordnung, KO) has been the collective, non-discriminatory satisfaction of creditors on a pro rata basis. To achieve this objective, the proceedings provide a framework for the liquidation of the insolvent debtor's assets by an independent court-appointed insolvency practitioner, either by way of asset-stripping or the sale of the debtor's entire business, followed by a distribution of the proceeds to the creditors.

Following an increasing trend toward strengthening the chances for a restructuring of the debtor's business as opposed to liquidating it, the Insolvency Code also provides for reaching an arrangement with all stakeholders by means of an insolvency plan procedure designed to reorganize the business and enable the enterprise to continue as a going concern, including by way of selfadministration (or

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

Mayer Brown is a global legal services provider comprising legal practices that are separate entities (the “Mayer Brown Practices”). The Mayer Brown Practices are: Mayer Brown LLP and Mayer Brown Europe – Brussels LLP, both limited liability partnerships established in Illinois USA; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales (authorized and regulated by the Solicitors Regulation Authority and registered in England and Wales number OC 303359); Mayer Brown, a SELAS established in France; Mayer Brown JSM, a Hong Kong partnership and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. “Mayer Brown” and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.

© Copyright 2024. The Mayer Brown Practices. All rights reserved.

This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

Debt-to-Equity Swap: Opportunities And Risks

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
GermanyInsolvency/Bankruptcy/Re-Structuring
Mayer Brown
Mayer Brown
Article

Trump Administration Announces New Enforcement Actions Against Employers In H-1B And PERM Fraud Probes

The Trump Administration has launched an unprecedented investigation into H-1B visa and PERM labor certification programs, with the Department of Labor's Office of Inspector General issuing dozens of subpoenas and suspending employers' ability to process applications. Federal agencies are deploying new enforcement tools including whistleblower programs and criminal prosecution threats...
United StatesImmigration
Mayer Brown
Mayer Brown
Article

AI Regulation In Singapore And Hong Kong: A Mid-Year Checkpoint

Singapore and Hong Kong continue to regulate artificial intelligence through existing laws and voluntary frameworks rather than comprehensive AI statutes, but the first half of 2026 has brought sharper emphasis on practical controls including agentic AI governance, assurance and testing, financial-sector oversight and cyber resilience. Both jurisdictions are building concrete expectations around risk management, transparency, human accountability and operational safeguards while avoiding horizontal AI legis
GlobalStrategy
Mayer Brown
Mayer Brown
Article

DOL Announces New Enforcement Policy For Mental Health Parity Nonquantitative Treatment Limitation Requirements

The US Department of Labor has issued new guidance establishing a streamlined framework for enforcing mental health parity requirements under MHPAEA, focusing enforcement on three priority areas while maintaining nonenforcement of controversial 2024 rule provisions. This guidance aims to reduce compliance burdens on plan sponsors while ensuring participants maintain access to mental health and substance use disorder benefits comparable to medical and surgical coverage.
United StatesEmployment and HR
Mayer Brown
Mayer Brown
Article

Russia/Ukraine Sanctions Update - Month Of August 2026

This monthly update tracks the latest developments in Russia/Ukraine sanctions across US, EU, and UK jurisdictions, covering new designations, general license extensions, legislative proposals, and enforcement actions. The update also examines Russia's countermeasures, including shadow fleet expansion and legal restrictions on foreign investors, while highlighting international coordination efforts by Switzerland, Canada, and New Zealand.
GlobalInternational Law
Mayer Brown
Mayer Brown
Article

SEC Staff Statement On Fair Value Measurement And Disclosure Considerations For Private Assets

The SEC Staff has issued new guidance addressing fair value measurement and disclosure practices for private credit and other illiquid assets held by registered funds and business development companies. As private credit portfolios have grown nearly 60% since 2020, reaching $270 billion, regulators emphasize the critical importance of robust valuation methodologies, transparent disclosure of significant judgments, and careful application of accounting standards when market prices are unavailable.
United StatesAccounting and Audit
Mayer Brown
Mayer Brown
Article

European Union Adopts 21st Package Against Russia & Parallel Sanctions On Belarus

The European Union has adopted its 21st package of sanctions against Russia and Belarus, significantly expanding restrictions across finance, energy, crypto, and military-industrial sectors. This comprehensive package introduces 218 new designations, freezes the oil price cap, imposes stricter LNG controls, and closes loopholes while reinforcing measures to discourage third-party sanctions evasion. The sanctions also strengthen protections for EU operators and facilitate business exits from Russia.
European UnionInternational Law
Mayer Brown
Mayer Brown
Article

Trump’s China Visit Will Likely Extend Trade Truce, While Points Of Friction Remain

President Trump's May 2026 state visit to China yielded agreements on trade boards, agricultural purchases, and tariff stability, but tensions persist over export controls and military company designations. As both nations pursue "strategic stability," multinational companies face increasing compliance conflicts from competing regulatory frameworks. Will the planned bilateral forums successfully navigate friction points in semiconductors, rare earths, and defense sectors?
ChinaInternational Law
Mayer Brown
Mayer Brown
Article

EU AI Act News: Digital Omnibus On AI, New Guidance On Risk Classification, GPAI, And Transparency Obligations

The European Union's Artificial Intelligence Act continues to evolve with significant regulatory updates that reshape compliance timelines and clarify key obligations. Recent developments include the Digital Omnibus on AI, which extends implementation deadlines for high-risk systems and introduces new prohibitions on harmful AI applications, alongside comprehensive guidance from the European Commission on classification criteria, transparency requirements, and general-purpose AI model obligations.
European UnionIntellectual Property
Mayer Brown
Mayer Brown