INSOL Europe March Newsletter. View this email in your browser.

INSOL Europe news and offers

March 2025

Dear Members

I have just returned from INSOL International’s annual conference in Hong Kong. It was a very professionally run and well attended event with over 800 people. Some of the topics of the conference were innovative and I am sure that they could be useful for the design of future INSOL Europe conferences. I will get those topics across to our technical team, to ensure that we have the most recent developments in our conferences as well.
 
Prior to the INSOL International conference, I attended the Membership Associations meeting, together with our CEO Paul Newson, as INSOL Europe is one of INSOL International’s membership associations. This was a really excellent way of knowledge sharing with similar organizations. There was a good discussion on many common themes and the agreement to share experiences and ideas. INSOL Europe is one of the biggest INSOL International’s Member Associations, and we have an excellent relationship. We are planning to organize a joint event in 2026. For you, this means that you have an automatic membership of INSOL International, and all advantages connected to that.  
 
Last week I also hosted our midyear Council meeting in Utrecht. As the strategic review is our most import topic right now, we organized a very hands-on workshop in order to define our new strategic goals and the key interventions. I expect that we will be able to give you a short overview of that process during our next Annual Congress in Vienna (9-12 October 2025). That congress will be launched in the coming weeks so you can expect a mailing in your inbox. 
 
I hope that you will join us in Bucharest on May 8-9th, for the EECC conference. The technical committee has put together an interesting programme focused on the technical challenges that our European insolvency and restructuring environment brings along.

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
EECC Conference 2025 - Register today and save!

Register your place today!

Early bird discount ends 4th April

Download the Technical Programme here

We are pleased to announce that the Eastern European Countries' Committee Conference will return to Romania in 2025 for its 19th Annual Conference on Friday 9 May 2025, which is now less than 2 months away. Our “Restructuring: Rebuilding Success” EECC Conference will be inter alia comprised of the following topics:

  • Financial Modelling in Insolvency
  • Valuation: the Pillar of Restructuring
  • Liquidation of Banks, Fintechs and Insurance Companies
  • Preventive Restructuring Frameworks in Practice
  • The challenges and opportunities of Pre-Packs
  • AI: Reshaping the Restructuring and Insolvency Industry

Find out more here and register your place today!

With thanks to our EECC Conference Sponsor:
ESG Non-Financial Information for Early Warning and Preventive Retructuring - The Italian case

In the Winter edition of Eurofenix Patrizia Riva (Associate Professor at Università del Piemonte Orientale, CPA, Auditor, IP )and Simone Accettura (Research fellow at Università del Piemonte Orientale, CPA, Auditor, IP assistant) discuss the integration of ESG (Environmental, Social, and Governance) non-financial information into corporate reporting and its role in early warning systems for business crises, specifically within the Italian context. 

You can read the full article titled 'The role of non-financial information in early warning and preventive restructuring' in the latest edition here.

Impact of CSRD: The Corporate Sustainability Reporting Directive (CSRD) mandates companies to provide comprehensive ESG information, emphasizing a "double materiality" perspective. This requires firms to disclose how their activities impact society and the environment, as well as how sustainability factors affect their performance. While unlisted SMEs are not directly required to report, they may still be influenced by larger firms' demands for sustainability data.

Non-Financial Information in Crisis Prevention: The Italian Insolvency and Crisis Code aligns with EU directives to promote preventive measures before a crisis occurs. It suggests combining financial indicators with ESG indicators to create a more holistic view of a company’s health. Companies must have robust organizational, administrative, and accounting structures to effectively monitor and respond to potential crises.

ESG Indicators for Crisis Forecasting: Identifying suitable ESG indicators is crucial for predicting business outlooks. The Italian Business Reporting Organisation (OIBR) has developed a framework for selecting non-financial ESG indicators to assess corporate structures and forecast crises. These indicators should consider various risks, including environmental, reputational, strategic, organizational, and market risks. The article concludes that integrating ESG factors into management and reporting is essential for effective crisis management.

If you would like to contribute to a future edition, please follow the guidelines on our website and contact Paul Newson with your proposal and a short synopsis.
New Insolvency Legislation in Ukraine: Strengthening Transparency and Preventing Asset Misappropriation

In addition to introducing preventive restructuring procedures, Law No. 3985-IX (“On Amendments to the Bankruptcy Code of Ukraine and Certain Other Legislative Acts of Ukraine Regarding the Implementation of EU Directive 2019/1023 and the Introduction of Preventive Restructuring Procedures”) has also brought important changes aimed at preventing the misappropriation of debtor assets in insolvency proceedings through so-called “related parties”. 

Although such parties may not have a formal legal influence over the debtor, they effectively control its fate. The law amends Article 1 of the Bankruptcy Code of Ukraine, introducing new categories of persons deemed related to the debtor, including: 

  • A legal entity established with the participation of the debtor; 
  • A legal entity that currently controls or has controlled the debtor within the last three years; 
  • A legal or natural person that is or was controlled by the debtor within the last three years; 
  • A legal entity that, together with the debtor, is or was under the control of a third party within the last three years; 
  • The owners (shareholders, participants) of the debtor; 
  • The CEO, management board members, chief accountant, and other executives of the debtor, including those who left their positions within three years prior to the initiation of bankruptcy proceedings; 
  • Persons with whom or for whose benefit the debtor has concluded transactions for the alienation of assets that do not meet the criteria of reasonableness (economic feasibility, business purpose) and good faith; 
  • A party to a fraudulent transaction made by the debtor or a transaction declared invalid under Article 42 of this Code; 
  • Family members of the above-mentioned persons, including spouses, children, parents, siblings, grandchildren, and other individuals who can be reasonably considered related parties. 

Key Change: Restriction of Voting Rights for Related Creditors 
The most significant innovation in this section of the law is that if a creditor is recognized as a related party to the debtor, they lose their decisive voting rights in creditors' meetings. This measure limits opportunities for unfair actions that could harm other creditors. These changes are expected to increase transparency in bankruptcy proceedings and strengthen protections against fraudulent schemes. 
 
Other Legislative Updates 
Additionally, the Ukrainian Parliament has extended the moratorium on bankruptcy for: 

  • State Enterprise "Eastern Mining and Processing Plant" until January 1, 2026; 
  • State-owned coal mining enterprises. 

This measure aims to prevent the bankruptcy of state-owned enterprises in the energy sector, ensuring stability in the energy industry, which has suffered significant damage due to massive attacks on energy infrastructure.

More updates and industry news can be found on our website here.
Rethinking Offline Public Tenders in Insolvency - Are they obsolete?

Organizing auctions with the aim of selling at the highest price possible has remained a common practice since the beginning of time. While the methods of organizing auctions have changed according to the customs of the time and place, the practice is still very common in most parts of the world. 

An interesting fact is that people tend to have a sort of fascination with auctions and often give them symbolic meaning, writes Patricia Poulussen-Radulescu, Project Manage at CITR Romania.

That is reflected in the ways the auction is organized: from announcing the starting price, to declaring the winner. When it comes to insolvency, public tenders align perfectly within its principles and scope: maximizing asset recovery, ensuring transparency in proceedings, giving a fair treatment to creditors, selling the assets in a timely and efficient manner. In Romania, creditors can choose between methods of asset sale, from negotiation procedures to public tenders, as long as transparency over the entire process is guaranteed. But we notice that still the most common method proposed by insolvency practitioners and approved by creditors is the public tender. Read the full story and others here.
Insolvency and Restructuring Trends in Luxembourg

In 2024, Luxembourg recorded a significant increase in bankruptcies, with 1,189 cases declared, marking a rise of almost 30% compared to 2023, when 919 bankruptcies were recorded.

This upward trend was evident throughout the year, with a notable 71% increase in bankruptcies in the third quarter of 2024 compared to the same period in 2023.

Christel Dumont and Thibault Jauffret, INSOL Europe Country Coordinators for Luxembourg, report.

Excluding holding companies, the most affected sector was construction, with 202 bankruptcies. Retail, hospitality and catering, and healthcare sectors followed, registering 176, 112, and 103 bankruptcies, respectively. In contrast, the transport and warehousing sector experienced a 25% decrease, while the trade sector remained relatively stable.

At the same time, the number of judicial liquidations fell sharply, from 520 in 2023 to 104 in 2024, representing a decrease of 80%. This downward trend became more pronounced from the second quarter of 2023. Holding companies and investment funds accounted for 46% of liquidations in 2024. The decrease is probably due to the introduction, in February 2023, of the administrative dissolution without liquidation procedure, which is managed by the Luxembourg Business Register Administration and applies to companies with no assets and no employees, that meet the conditions for the opening of a judicial liquidation. 

The introduction of judicial reorganization in November 2023, as part of the transposition of the EU restructuring directive, marked a pivotal moment for Luxembourg's insolvency framework. For the first time, businesses in financial distress were provided with a viable alternative to bankruptcy, allowing them to restructure while continuing operations.

In 2024, 34 judicial reorganization proceedings were initiated, surpassing expectations and highlighting the immediate relevance of this new procedure. This early uptake is seen as an encouraging sign, with 2025 expected to bring a substantial increase in the number of companies turning to judicial reorganization to address their financial difficulties. However, challenges persist. In particular, the congestion in Luxembourg’s courts could hinder the timely progression of cases, in particular for judicial reorganization which implement a completely new framework. 

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

10 Reasons to renew your Membership in 2025

  1. Get DISCOUNTED RATES for our flagship Annual Congress, Academic Conference, Eastern European Conference and joint events.
  2. Become part of our unique and RENOWNED COMMUNITY where you will have opportunities to network with over 1300 members from 50 countries. 
  3. Access our MEMBERSHIP DIRECTORY where you can search for fellow members by name, jurisdiction, profession and expertise. 
  4. Get in touch with your Council member and Country Co-ordinators to MAKE CONNECTIONS within your own country. 
  5. Automatically become a member of INSOL International and get their full member benefits.
  6. Enjoy a free subscription to EUROFENIX, INSOL Europe’s popular quarterly 48-page journal.
  7. Free access to our huge TECHNICAL RESOURCES library.
  8. Opportunity to PUBLISH ARTICLES in Eurofenix, our Monthly newsletter, on our website and social media. 
  9. GET INVOLVED on projects that affect your particular industry in one of our many working groups or committees.
  10. INSOL Europe has a STRONG RELATIONSHIP with EU officials and representatives of inter-governmental organisations.
Visit our website for more details or contact Hannah Denney.
 
Academic Forum Annual Conference 2025: Call for Papers

Call for Papers

The Academic Forum of INSOL Europe will be hosting its 21st Annual Conference in Vienna, Austria, on Wednesday 8 – Thursday 9 October 2025, immediately prior to INSOL Europe's Annual Congress taking place in Vienna from 9-12 October 2025.

Expressions of interest are invited for the delivery of research papers and a presentation within the overall Academic Conference theme: ​ 

“When West Meets East: Bridging Europe's Insolvency Regimes”

Expressions of interest should be sent by email on or before 30th March 2025 
to Jennifer Gant, the Academic Forum's Deputy Chair,
by email at: jenniferl.l.gant@gmail.com on the submission form.

The Academic Forum is pleased to acknowledge the generous sponsorship
of Edwin Coe LLP and their ongoing support of our activities
 
Annual Congress 2025 - Vienna, Austria - Save the Date!

Preparations are now underway for our next Annual Congress, which will be held in Vienna, Austria from 9-12 October 2025. We are pleased to announce that the 2025 Technical Committee will be:

Information about the theme of the Technical Programme will be announced soon!

With thanks to our Main Sponsor:
Forthcoming Events in 2025 - Save the Dates!

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
  • 12-14 June 2025, AIJA/INSOL Europe Young Members Group (YMG) Joint Conference, Girona, Spain
  • 3 July 2025, Joint Conference with R3
  • 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.

 
INSOL Europe, PO Box 7149, Clifton, Nottingham. NG11 6WD
www.insol-europe.org
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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.