In the current issue of Unternehmeredition, our lawyers and partners Dr Christian Becker and Dr Lutz Pospiech have published a guest article on the challenges and solutions involved in restructuring corporate bonds. Particularly in the current economic situation, companies, especially property companies, are facing the challenge of repaying or refinancing bonds.
Restructuring could offer a solution before insolvency occurs. The German Bond Act (Schuldverschreibungsgesetz - SchVG) and the StaRUG (Unternehmensstabilisierungs- und -restrukturierungsgesetz) allow the maturities of bonds to be extended, interest rates to be adjusted or a debt equity swap to be carried out outside of insolvency proceedings.
A successful restructuring requires the consent of a qualified majority of bondholders. It is therefore crucial to involve expertise at an early stage and develop a viable concept.
You can find the online article here (in German): Restructure bonds and thus avoid insolvencies (Unternehmeredition.de)
