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New Guidelines for Protecting Secured Lenders’ Share Foreclosure Rights in German Bankruptcies

On September 24, 2015, the German Supreme Court held that secured lenders of insolvent German debtors are not stayed from foreclosing on stocks in a German corporation (Aktiengesellschaft) in an insolvency of the pledgor, but only where those stocks have been placed in trust for the benefit of the lenders.