M&A transactions in times of crisis – Is the StaRUG a useful restructuring tool from a financing and restructuring perspective?

On January 1, 2021, the German legislature implemented the European Directive on Restructuring and Insolvency by creating a financial restructuring instrument in the form of the Act on the Stabilization and Restructuring Framework for Companies (StaRUG). The StaRUG is intended to enable companies in crisis to avert imminent insolvency outside of insolvency proceedings and by resorting to appropriate capital measures. Against the backdrop of the current market environment, the 28th Munich M&A Forum, held on May 14, 2024, at the Literaturhaus in Munich, felt compelled to take stock of the situation: Is the StaRUG suitable for dealing with polycrises from a financing and restructuring perspective?