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Expert Analysis

No Consolidation In German Group Insolvencies

Law360, New York (February 5, 2013, 6:45 PM EST) -- The German Federal Ministry of Justice has prepared an internal draft of a bill to facilitate the handling of group insolvencies (the "Draft Bill"). For the first time in Germany, the Draft Bill would, if enacted as drafted, introduce special rules relating to the insolvency of group companies. The Draft Bill continues a recent series of legislative initiatives to modernize German insolvency law. Most notably, this includes the Act to Facilitate Further the Restructuring of Companies, which facilitates in-court restructurings of insolvent companies and became effective on March 1, 2012.[1]...

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