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Dear Members

It is a great honour to write this, my first editorial as President of INSOL Europe. When I arrived back in my office after the wonderful Annual Congress in Sorrento, I realized that Giorgio will be a tough act to follow, as he has been an excellent President last year. Thank you Giorgio, I am going to do my best to follow in your footsteps.
 
This coming year we will be working on our Strategic Taskforce for the Strategic Plan 2025-2030, which we will present during our next Congress in Vienna (9-12 October 2025, a date for your dairy). The last time we did such a project was in 2018, and one of the outcomes was that we needed to strengthen our membership. The Membership Development Committee was established and subsequently the Country Coordinators were appointed. Through the Country Coordinators we have been successful in getting our membership numbers up, currently standing at over 1300. We now also established cooperation agreements with 14 independent national organizations, and we are working to get proper cooperation with every one of them. Also, our wings have been strengthened, as we are proud of our Academic and Judicial members. They provide us with so much experience and knowledge that is invaluable for our members.
 
As you all have been contributing to our surveys in Sorrento, we now have the task of deciding which topics and goals you think important for INSOL Europe going forward to 2030. In all our endeavors we cannot be successful without the commitment and time of our members. I do wish to encourage every member to actively participate in INSOL Europe. I was very happy with all the comments and ideas for the Vienna Congress that I received by email: I will listen to you!
 
I look forward to engaging with as many of you as possible. Let’s go!

Alice van der Schee
President, INSOL Europe

 

 

Alice van der Schee
President of
INSOL Europe

 

This issue is kindly
sponsored by:

 

LETT

DLA Piper is a global law
firm with lawyers located
in more than 40 countries
throughout the world.
www.dlapiper.com

2024 Annual Congress, Sorrento: Sustainability in Distress

Speakers Professor Patrizia Riva, Professor Alessandro Danovi, Jan Bech, Jean Baron, and Judge Catherine Burton (left to right)

See Naples and... Restructure Sustainably: INSOL Europe in Sorrento

For two days (4-5) in October, INSOL Europe gathered in Sorrento on the Bay of Naples at a conference on the theme of Sustainability in Distress. Over 450 delegates from 30 jurisdictions and more came together to listen to keynotes and presentations on the challenges facing modern restructuring and insolvency law, especially in the transition of business models towards ESG-compliance and the risks this poses to the continuation of business entities.

Photos from the Congress can be viewed on our website here.

A full and detailed report by Paul Omar can be read here.

2024 Academic Conference Report: Evolution or Revolution

Professor Rodrigo Rodriguez, Chair of the Academic Forum, opening the Conference

On the Bay of Naples: The Academics in Sorrento

The INSOL Europe Academic Forum Annual Conference 2024 took place on 2-3 October 2024 in Sorrento on the Bay of Naples with the following theme: “The Evolution or Revolution of European Insolvency Law”. The event attracted over 65 delegates from 20 jurisdictions. Over the two days of the conference, over 25 speakers gave presentations on various subjects associated with the overarching conference themes of ESG and modernising insolvency and restructuring law.

Photos from the Conference can be viewed on our website here.

A full and detailed report by Myriam Mailly can be read here.

INSOL Europe Council Meeting and OGM

INSOL Europe's Council met in Sorrento to discuss the past 12 months and goals for the forthcoming year, including the launch of our new Strategic Plan. Invited to the meeting for the first time were the new members who took their seats following the Council elections in September.

Christel Dumont has joined the Council representing Luxembourg as they now have more than 30 members; Fedra Valencia Garcia won the seat for Spain, replacing Adrian Thery; Ian Benjamin won the non-reserved seat, replacing Laurent le Pajolec; and Christophe Thevenot won the seat for France, replacing Jean Baron.

At the OGM, Alice van der Schee (Netherlands) become the new President, with Frances Coulson (UK) becoming the Deputy. We are also very happy to announce that Frank Heemann (Lithuania) has become the new Vice President, which means he will be the next President after Frances. We look forward to his valuable input into our meetings and discussions throughout the months to come. We also appointed a new Treasurer - Enda Lowry (Ireland) to replace Eamonn Richardson (Ireland) who has stood down after four years in the role.

We give wholehearted thanks to those Council members who have served their time and contributed so much to the work of our Association, and welcome on board those new members, whose input we look forward to in the following years.

Renew your Membership and enjoy these Benefits

Visit our website for more details or contact Hannah Denney.
 

 

UNIDROIT Report on Bank Liquidation: Response from INSOL Europe

In June, the International Institute for the Unification of Private Law (UNIDROIT) launched a consultation on its Draft Legislative Guide on Bank Liquidation. The Draft Legislative Guide has been developed by the Working Group on Bank Insolvency, a group of international experts from different legal systems, as part of the Bank Insolvency Project conducted by UNIDROIT in cooperation with the BIS Financial Stability Institute. 

The aim of the Draft Legislative Guide is to assist legislators and policymakers in designing effective bank liquidation regimes tailored to the special nature of banks and their role in society. The Guide focuses on “non-systemic banks”, thereby complementing existing international standards. Specifically, it provides guidance on frameworks for the orderly liquidation of (i) banks that are not placed under a resolution procedure compatible with the FSB Key Attributes, and (ii) parts of a bank following, or in the context of, a resolution action. 

INSOL Europe acknowledges the relevance and timeliness of the Guide prepared by UNIDROIT with some suggestions in a report prepared by the Academic Forum and YANIL members of INSOL Europe with Dr Paul Omar as coordinator, stemming from both procedural and substantive concerns about the integrity of the process. These suggestions, while still providing for the flexibility required to give flesh to the recommendations during the process of legislative transplantation, are designed to help improve the accessibility and adaptability of the text.

Read INSOL Europe’s full response to the guide here.

Focus on INSOL Europe's Academic Forum

The INSOL Europe Academic Forum was founded in 2004 as a constituent body of INSOL Europe. The Academic Forum’s primary mission is to engage in the representation of members interested in insolvency law and research, to encourage and assist in the development of research initiatives in the insolvency field and to participate in the activities organised by INSOL Europe.

The membership of the Academic Forum includes insolvency academics, insolvency practitioners with recognised academic credentials as well as those engaged in the research and study of insolvency.

The Academic Forum meets annually in conjunction with the main conference of INSOL Europe. A number of smaller events, including University seminars and colloquia, are also co-hosted by the Academic Forum with institutions across Europe. 

During the pandemic, events were held also online at regular intervals. Papers from the annual events are collated and published for members approx. 6 months after each event.

The current Chair of the Academic Forum is Professor Rodrigo Rodriguez, Tenured Professor for Procedural and Insolvency Law, University of Lucerne (Switzerland). Deputy Chair is Jennifer L. L. Gant, Senior Lecturer, University of Derby, School of Law. You can contact either of them for further information about the work of the group, or visit their pages on the INSOL Europe website here.

National Insolvency Statistics Update: Romania

The number of high-impact companies in Romania which initiated insolvency proceedings was double in the first half of the year compared to the same period of 2023, reports Paul-Dieter Cîrlănaru, CEO of CITR (Romania).

More than 3,600 companies have initiated insolvency proceedings in the first half of 2024, and 72 are high-impact companies, with assets of over EUR 1 million, compared to 33 in the same period of last year.  

71 applications for initiating proceedings of arrangement with creditors were registered in the first half of the year, out of which 33 are in progress, and 19 were filed by high-impact companies, five more than in the entire year 2023.

The number of companies which initiated insolvency proceedings in the first half of the year increased to over 3,600, compared to 3,401 in the first six months of 2023. Out of these, 72 are high-impact companies, with assets of over EUR 1 million, compared to only 33 in the same period of last year. 

Regarding the number of restructuring applications via proceedings of arrangement with creditors, there were 71 applications in the first six months of the year, out of which 33 are in progress. 19 applications were filed by high-impact companies. There is no visibility in the market on the restructuring agreement as this is a confidential procedure.

Which were the most affected business sector in January-June 2024?
CITR has conducted a sectorial analysis of all the companies which initiated insolvency proceedings in the first half of this year, which provides insight into the challenges from each field and supports companies in implementing adequate restructuring strategies.

  • Wholesale and retail: 26% of all the insolvencies 
  • Construction: 20% of all the insolvencies 
  • Processing industry: 12% of all the insolvencies 
  • Transportation and storage: 10% of all the insolvencies 
  • Hotels and restaurants: 7% of all the insolvencies 

Arrangement with creditors, an increasingly popular solution for companies in difficulty
In the first half of the year, there were 71 applications for initiating proceedings of arrangements with creditors, out of which 33 are in progress. 19 of these are high-impact companies, five more than in the entire year 2023.

The cumulated turnover of the companies which used arrangements with creditors is EUR 408,729,900, and their non-current assets are worth EUR 118,765,815. Moreover, their total number of employees is 4,481.

The first five counties in the country by number of proceedings of arrangement with creditors are: Bucharest and Dolj with 8 proceedings, Cluj and Mureș with 5 proceedings and Ilfov with 3 proceedings.

Further statistics from Romania and other jurisdictions can be found on our website here.

 

INSIDE Story: Harmonisation in the EU - the view from Poland

The Insolvency Directive Proposal: Draft Opinion and Amendments offering Best Chances for Harmonisation of European Insolvency Law

In December 2022, the European Commission presented a draft Proposal for a Directive of the European Parliament and of the Council harmonising certain aspects of insolvency law.  This draft proposal opened discussions on some of the potential changes into national laws and generated differing remarks and positions towards the Proposal.

Forty-nine entities from the European Union, including the Allerhand Institute, issued their positions within this legislative process, and now the European Commission is analysing them, hoping to propose a final version of the Directive.

As within the whole European Union the level of coherence of the above-mentioned issues is relatively low, this Inside Story by Paweł Kuglarz and Mateusz Kaliński of Tatara and Partners in Poland may be insightful for other Member States facing the need to assess the required changes and amendments to the new law. Read the full story here.

 
Forthcoming Events in 2025 - Save the Dates!

As we look ahead to 2025, we are already working on our next series of high-profile events, presenting many opportunities for businesses, industries, and professionals to connect, innovate, and grow. The year will offer numerous occasions for networking, thought leadership, and market expansion. Here’s a preview of the key INSOL Europe events that will drive business opportunities and shape trends in 2025.

  • 8-9 May 2025, EECC Conference, Bucharest, Romania (tbc)
  • 3 July 2025, Joint Conference with R3 (tbc)
  • 7-8 October 2025, Academic Forum Conference, Vienna, Austria
  • 9-12 October 2025, Annual Congress, Vienna, Austria

Visit our website for more events to be added as they are confirmed.

 
 

We welcome feedback, news and story ideas for future newsletters. 

Please send your suggestions to Paul Newson, CEO & Communications Manager,
email: paulnewson@insol-europe.org.

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Thanks to our General Sponsors

Please contact Hannah Denney for sponsorship opportunities.

 

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Disclaimer: This newsletter is sent to members of INSOL Europe. No responsibility legal or otherwise is accepted by INSOL Europe for any errors, omissions or otherwise. The opinions expressed in the articles that appear are not necessarily shared by any representative of INSOL Europe.