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Navigating German equitable subordination: implications and structuring options post-ECJ judgment
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The European Court of Justice has provided critical clarification on the application and interpretation of European insolvency regulation provisions regarding German equitable subordination and claw-back of shareholder loans in cross-border insolvency cases. This decision reinforces the protective nature of German insolvency law, preventing shareholders from circumventing these rules through the choice of foreign law.
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