As a result of the financial crisis, the German legislator enacted the Credit Institutions Reorganization Act (KredReorgG) with the aim of preventing future crises in the credit sector. David Rapp examines the restructuring and reorganization rules for credit institutions contained in the KredReorgG for the first time from a business management perspective. The author demonstrates that the legal requirements for initiating the restructuring process must be regarded as misguided from a business perspective and presents an innovative approach to initiating restructuring. Additionally, he develops an investment-theoretical model for the legally required compensation assessment in the event of a transformation from debt to equity that can be applied during the reorganization.