Percorrer por autor "Wortmann, Cedric Jan"
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- Optimizing the distressed workout process for struggling or failing companies in GermanyPublication . Wortmann, Cedric Jan; Rajsingh, PeterCorporate distress and insolvencies are rising in Germany, exposing limitations in the existing restructuring framework. Instruments like the Insolvenzordnung (InsO) and StaRUG exist, but their effectiveness is undermined by stigma, rigid procedures, and weak investor incentives. This thesis examines how Germany’s restructuring process can be improved to foster early intervention and attract financial investors, particularly in private equity and distressed debt. Based on expert interviews, legal comparison, and literature review, key barriers are identified: high advisory costs, limited StaRUG tools, an underdeveloped DIP market, and fragmented court expertise. Additionally, the strong influence of insolvency administrators, often driven by procedural incentives, discourages early out-of-court solutions. Using U.S. Chapter 11 as a benchmark, the study recommends reforms such as judicial specialization, improved operational tools, incentivized DIP financing, a cultural shift in restructuring perception, and revised governance roles for administrators. A correlation analysis supports the link between legal fragmentation, administrator dominance, and investor hesitancy. The thesis offers actionable recommendations to build a more agile, transparent, and investor-friendly restructuring system, vital for resolving zombie firms, the rising numbers of insolvencies and ensuring long-term economic stability.