The new German Bond Act came into force in 2009, replacing the first German Bond Act of 1899. The 2009 Act primarily aims to align German bond law with international standards and to improve the ability to effect bond restructurings outside of insolvency proceedings. This is because the lack of flexibility in relation to bond restructurings was identified by legal practitioners and lawmakers as one of the 1899 Act's main flaws.

This article sets out some of the key features of the 2009 Act, assesses the first practical experience of bond restructurings under the 2009 Act, and discusses some open questions under the 2009 Act.

This article is part of the PLC multi-jurisdictional guide to restructuring and insolvency law. For a full list of jurisdictional Q&As visit www.practicallaw.com/restructure-mjg.