The first trend that emerged relates to the desire to encourage the debtor and its key creditors to negotiate the terms of a debt restructuring before the debtor enters into a more extensive insolvency procedure. In this regards, the proposed legislation contemplates the introduction of pre-insolvency restructuring proceedings, which would allow a debtor for a period of up to three months to develop and negotiate an insolvency plan with its creditors, subject to the protection of a statutory moratorium – a quasi German "chapter 11".

Under the proposed German legislation, a debtor choosing to initiate pre-insolvency restructuring proceedings will be granted a period of not more than three months in which to develop and negotiate an insolvency plan with its creditors.

Under the proposed German legislation, the ability of debtors to pre-negotiate a restructuring with some degree of court protection would be conditional on the debtor having sufficient liquidity to meet its ongoing costs and expenses during the negotiation process. Also, the court would have the power to cut short the pre-insolvency restructuring period if the debtor becomes insolvent.

The proposed legislative changes are intended to encourage the debtor's management to act early in order to address the financial challenges facing the company and the amended German self administration regime would allow the debtor's management to remain in control of the debtor's business while the restructuring is being negotiated, subject to a certain degree of supervision by a court-appointed trustee, the Sachwalter tasked with reviewing and facilitating the restructuring process.

Under the proposed German legislation, majority creditors would be able to influence the choice of the insolvency administrator (and thus the likely path of the restructuring process). Moreover, in considering whether to grant a self administration petition, the court would generally be required to follow the majority creditors' wishes. Also, the proposed reforms would limit those minority creditors' powers to object to an insolvency plan, unless they can show that: