The German Bundestag has recently passed a new law as a result of a long running drive to reform how group insolvencies are to be dealt with in the jurisdiction. The reforms were suspended whilst the European Union formulated the Recast Insolvency Regulation, but, the German legislation has been finalised and the reforms effective from 21 April 2018.

Given the focus of the Recast Insolvency Regulation, it is unsurprising that elements are mirrored within the new legislation, which offers a structure for the German courts to deal with corporate group insolvencies both domestically and on a cross border basis. Previously group insolvencies have been dealt with on an ad hoc basis by the Courts, and the new structure with an emphasis on coordination and cooperation is hoped to increase recoveries for creditors and increase certainty for practitioners.