Service 03 · Proceedings & StaRUG

StaRUG, self-administration, protective shield. Using the procedure as a tool.

When individual creditors block a deal or financing cannot be secured without court support, the German StaRUG and self-administration offer an orderly way forward. We prepare the procedure from the business side, build the financial plan and restructuring plan with the restructuring lawyers and, if required, bring the investor solution with us.

Describe your situation

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In short

The StaRUG (Unternehmensstabilisierungs- und -restrukturierungsgesetz, the German Corporate Stabilisation and Restructuring Act) has allowed companies since 2021 to restructure outside insolvency: where illiquidity is imminent, a company can propose a restructuring plan that is adopted with 75 percent of the voting rights in each creditor class and also binds dissenting creditors. It is Germany's implementation of the EU Restructuring Directive, comparable in function to a UK restructuring plan. Where insolvency can no longer be avoided, self-administration (Eigenverwaltung) and protective shield proceedings (Schutzschirmverfahren) under §§ 270 et seq. of the German Insolvency Code (InsO) allow a restructuring under the control of existing management, similar to a debtor-in-possession process. Tactical handles the financial preparation and implementation; legal advice is provided by specialised restructuring lawyers.

A formal procedure is not a failure but an instrument. Properly prepared, it protects the company from individual enforcement, allows financial liabilities and contracts to be reorganised and buys time for the operational turnaround.

Timing is decisive. Those who act early can choose between an out-of-court solution, the StaRUG and a protective shield. Those who come too late are often left with standard insolvency proceedings (Regelinsolvenz) only.

Updated: September 2026 · Responsible: Dr. Raphael Nagel (LL.M.), Founding Partner

Typical situations

When a formal procedure can be the right route.

An out-of-court agreement fails because of individual banks, bondholders or suppliers.
Financial liabilities need to be deferred, written down or converted into equity.
Illiquidity is imminent but has not yet occurred.
Onerous contracts, leases or sites need to be terminated.
An investor is ready to come in, but only with a cleaned-up balance sheet.
Management wants to remain in control of the restructuring.

What we actually do

What we take on in the procedure.

Choice of procedure

Side-by-side comparison of an out-of-court solution, StaRUG, protective shield and self-administration. With timetable, costs and prospects of success.

StaRUG restructuring plan

The financial part of the plan: creditor class formation, comparative calculation against the alternative scenario, integrated financial plan. The legal part together with the restructuring lawyers.

Self-administration planning

Six-month financial plan and concept for conducting the procedure under § 270a InsO, the precondition for the court ordering self-administration.

Insolvency plan

Plan calculation, recovery-rate comparison and implementation. The aim is to preserve the legal entity rather than break it up.

Creditor communication

Alignment with banks, suppliers, credit insurers, the works council and the creditors' committee. Transparent and early.

Investor solution

M&A process within the procedure or direct acquisition by Tactical. A credible investor offer increases creditor support for the plan.

Procedures compared

StaRUG, protective shield and self-administration at a glance.

The three routes differ mainly in when they are available and what they allow you to restructure. The overview is simplified and does not replace a legal review of the individual case.

	StaRUG restructuring plan	Protective shield (Schutzschirmverfahren, § 270d InsO)	Self-administration (Eigenverwaltung, §§ 270 et seq. InsO)
Access	Imminent illiquidity; not available once the company is insolvent	Imminent illiquidity or over-indebtedness; not available if already illiquid	Any ground for insolvency
Publicity	Generally not public	Public	Public
Who is in charge	Management with its advisers	Management, supervised by a preliminary monitor (vorläufiger Sachwalter)	Management, supervised by a monitor (Sachwalter)
Employment contracts and pensions	Cannot be restructured	Can be restructured under insolvency law	Can be restructured under insolvency law
Insolvency wage payments (Insolvenzgeld)	No	Yes, for up to three months	Yes, for up to three months
Typical duration	Three to six months	Protection period of up to three months, then insolvency plan	Six to twelve months

Simplified overview, not legal advice. As of September 2026. Austria: Restructuring Code (Restrukturierungsordnung, ReO) and restructuring proceedings under the Insolvency Code (IO). Switzerland: composition proceedings (Nachlassverfahren) under the SchKG.

Tactical's role

Commercial responsibility, legal precision.

A procedure needs both: a viable business plan and a clean legal execution. Tactical is responsible for the commercial side: financial planning, measures, financing, investors and the operational turnaround during the procedure. Legal advice and representation in court are handled by specialised restructuring lawyers with whom we work closely.

Because we invest ourselves, we can back a procedure with a concrete investor solution. For creditors, that is often the strongest argument to approve a plan.

Process

How a StaRUG restructuring runs.

Weeks 1 to 2

Review and direction

Liquidity status, grounds for insolvency, choice of procedure. Decision with management and shareholders.

Weeks 2 to 6

Plan and financials

Restructuring plan, creditor classes, comparative calculation, alignment with the key creditors.

Weeks 6 to 12

Vote and confirmation

Notification to the restructuring court, a stabilisation order (moratorium) if required, creditor vote and court confirmation of the plan.

After that

Implementation

Operational turnaround, implementation tracking and, where agreed, the entry of the investor.

More than advisory

We bring the investor. If necessary, we are the investor.

Many procedures fail not because of the plan but because nobody provides fresh capital. Tactical can come in as the investor under the plan, acquire the business by way of a transferring restructuring (übertragende Sanierung, an asset deal out of insolvency; page in German) or provide bridge financing for the duration of the procedure. More on our role as investor under Company acquisition.

FAQ

Frequently asked questions.

What is the StaRUG?

The German Corporate Stabilisation and Restructuring Act (Unternehmensstabilisierungs- und -restrukturierungsgesetz) has implemented the EU Restructuring Directive in Germany since 1 January 2021. It allows companies facing imminent illiquidity to restructure without insolvency proceedings, on the basis of a restructuring plan that can become binding even against the will of individual creditors.

What majority does a StaRUG restructuring plan require?

In each creditor class, at least 75 percent of the voting rights must approve (§ 25 StaRUG). Under certain conditions, a dissenting class can be overruled by a cross-class cram-down (§ 26 StaRUG).

What is the difference between the StaRUG and protective shield proceedings?

The StaRUG is not an insolvency procedure, is generally not public and is only available where illiquidity is imminent. Employment contracts cannot be restructured under it. Protective shield proceedings are insolvency proceedings in self-administration, which are also available in the case of over-indebtedness, become public and make the tools of insolvency law available, such as insolvency wage payments and easier termination of contracts.

Does management keep control during the procedure?

Under the StaRUG, yes: management remains fully in charge. In self-administration and protective shield proceedings, management continues to run the business but is supervised by a monitor (Sachwalter). In standard insolvency proceedings, control passes to the insolvency administrator.

Does Tactical provide legal advice in the procedure?

No. Tactical is responsible for the commercial side: financial planning, measures, financing and the investor solution. Legal advice and court representation are provided by specialised restructuring lawyers, whom we bring in on request.

Can Tactical buy the company during the procedure?

Yes. We act as investor under an insolvency or restructuring plan or acquire the business by way of a transferring restructuring. In that case we ensure a clear separation of roles so that conflicts of interest are excluded.

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