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INSOL Europe news and offers

Dear Members

Welcome to the latest edition of our newsletter, where we explore the evolving landscape of insolvency  and reflect on the strength of our community. 

INSOL Europe has been showing its face a lot around Europe. For example, Alice van der Schee (our Vice President) and Emmanuelle Inacio (our Chief Technical Officer) spoke at the CNAJMJ/VID conference in Brussels on 25 May, and Frank Tschentscher (Immediate Past President) and I attended the NIVD Spring Dialogue in Wiesbaden on 24 May. You can read about our most recent event below - the EECC Conference – which returned to live events with a sell-out conference in Vilnius on 18 & 19 May. We also have many other events on the horizon in London (15 June), Seville (29 June - 1 July) and Amsterdam (11-15 October), details of which can be found in this newsletter. 

One of the key strengths of INSOL Europe lies in its diverse and dynamic membership. This enables us to approach complex challenges from multiple perspectives, fostering innovation. 

As we move forward, it is important to acknowledge the significant developments on the European stage. The recently proposed EU Directive on the harmonization of insolvency laws brings a renewed focus on the importance of our profession in the region. This directive aims to create a standardized framework for insolvency proceedings, ensuring consistency and effectiveness across European Union member states. It presents an opportunity for us to contribute actively to the shaping of insolvency legislation and share our expertise in this critical area. 

INSOL Europe, as the leading professional association, will actively engage with policymakers, contribute to legislative debates, and advocate for an insolvency framework that strikes the right balance between the interests of debtors and creditors, while facilitating efficient and fair proceedings. Our members' diverse backgrounds and experiences uniquely position us to contribute constructively to the discussions surrounding this proposed directive. Through collaboration, knowledge sharing, and continuous professional development, we will collectively shape the future of our profession.

We will continue to provide platforms for knowledge exchange, professional development, and networking. Our conferences, webinars, and forums will enable us to stay connected, share best practices, and learn from each other's experiences. By harnessing the collective wisdom of our community, we can navigate the evolving insolvency landscape with confidence and resilience.

Thank you for your continued support.

Barry Cahir
President, INSOL Europe


Barry Cahir
President of
INSOL Europe


This issue is kindly
sponsored by:



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


The '2023 Restructuring and Insolvency Practitioners Survival Kit’

​On 18-19 May, the vibrant city of Vilnius played host to the 17th in-person INSOL Europe Eastern European Countries Committee (EECC) Conference on the “2023 Restructuring and Insolvency Practitioners Survival Kit”. 

The reason for the conference title was because the world is experiencing a level of disruption and business risk not seen in generations that poses significant challenges to global economic recovery and stability. 

In more precise terms, inflation is kicking in, there is a horrible war going on in Europe for 15 months and counting and significant banks have ended up being bailed out but their competitors or FED. 

The way insolvency and restructuring professionals react to this crisis and aid their clients in dealing with the plethora of issues they are faced with in these uncertain times will have a profound effect, not only on individual businesses and their respective workforces, but on the economy at large. 

To gather a better understanding of this landscape of adversity and what insolvency and restructuring professionals may be able to offer their clients, what tools they have at their disposal in their respective countries and what is in store in terms of future regulation, the technical programme - carefully built by the Technical Committee, comprising Ieva Strunkienė (CEE Attorneys, Lithuania), Edvīns Draba (Sorainen, Latvia), Frank Heemann (bnt attorneys in CEE, Lithuania), Roman-Knut Seger (BDO Restructuring, Germany), and Peeter Viirsalu (TGS Baltics, Estonia) - offered the delegates a survival kit that did not leave them out in the cold! 
One overarching challenge emerged from the discussions - the increasing complexity of legislation surrounding the IP profession. With the introduction of new EU directives and regulations, IPs find themselves grappling with intricate legal frameworks that demand careful navigation. Implementing and adhering to these regulations can be a daunting task, requiring significant time and resources. IPs must remain updated on evolving legal requirements, adapt their practices accordingly, and ensure compliance across multiple jurisdictions. This challenge becomes even more pronounced as IPs strive to balance their regulatory obligations while maintaining efficiency in their work. Understanding and implementing new legislation, alongside managing ongoing insolvency cases, can lead to delays and inefficiencies, potentially impeding the timely resolution of cases and overall economic recovery.

The event would not have taken place without the generous contribution of the main sponsor BDO Restructuring, technical sponsor SORAINEN, App sponsor CITR, Lunch sponsor bnt attorneys in CEE and INSOL Europe Young Members Group (YMG) sponsor Schiebe und Collegen. The event was also supported by Go Vilnius, Mykolas Romeris University, Nemokumo Administratoriu Rumai, Lietuvos Advokatura and AIJA, the International Association of Young Lawyers.

A full report by Niculina Șomlea, Co-ordinator to EECC, will be published in the Summer edition of Eurofenix. Photos from the event can be viewed on our website here.

With thanks to our Main Sponsor:

Takeaways from the third Joint Fraud Conference in London 

The metaverse, the environment, business directors, and more… fraud is everywhere.

At the end of March, over 160 professionals and academics from across the UK gathered at the Royal College of Physicians in London to hear insights from experts on key issues in this space at the 3rd Fraud Conference, held jointly by INSOL Europe, R3 and the Fraud Advisory Panel.

The conference was chaired by INSOL Europe's Frances Coulson (Wedlake Bell) and sponsored by Azets

In her blog on R3’s website, Amelia Franklin writes on the four key takeaways from this year’s conference, summarised below.

Integrity can be modelled

A lack of leadership, combined often with a lack of integrity from people in positions of power was one of the key themes from the first session of the day, which saw Priya Giuliani use behavioural science to breakdown why people act unethically and discuss some of the tactics we can use to address the integrity deficit.  

Better legislation is needed to tackle fraud more effectively

Fraud is hard to root out – and one reason for this is because of the number of loopholes open for bad actors to take advantage of. Speakers on environmental fraud gave an example of just one of these loopholes, where fraudsters collect recycling credits but then dispose of the waste illegally or create complex cycles where material is ‘recycled’ multiple times.

Lack of funding is holding back the fightback

In a talk from the Insolvency Service and R3’s CEO, Dave Magrath gave some sobering statistics to the amount of time and work that goes into investigating fraud – with 400 staff members in the investigations team looking into around 2,000 investigations a year. Counter that with more than 25,000 cases reported just this year, the issue of money becomes apparent.

The Boris Becker trial was a landmark moment for personal insolvency

When Boris Becker entered bankruptcy in 2017, no one knew the legacy that would come from his trial. His conviction and subsequent 2.5-year sentence gave forewarning to anyone facing insolvency about the importance of being open and honest about what assets they have and what they can afford to pay back to creditors.

An ongoing battle

While fraud won’t be solved overnight, the 2023 Fraud Conference highlighted how much work goes into tackling unethical behaviour in all sectors and gave delegates new perspectives on how to build integrity and trust in their own space, whether at home, at work or even in the metaverse. News of our 2024 event will be announced soon.

Critical Infrastructure Enterprises: Moratorium on Bankruptcy in Ukraine

The Verkhovna Rada of Ukraine is considering Draft Law No. 8316 on introduction of amendments to Article 8 of the Law of Ukraine On Critical Infrastructure (on the settlement of disputes, the subject matter of which is the state’s title to the state-owned critical infrastructure facilities). 

It is proposed to amend Article 90(1) of the Code of Ukraine on Bankruptcy Procedures, in particular, to add new grounds for closing the bankruptcy case.

Therefore, the case is subject to closing if it is initiated in relation to economic companies that are operators of critical infrastructure, in the authorized capital of which more than 50 percent of the stakes (shares, ownership interests) are directly or indirectly owned by the state and the stakes (shares, ownership interests) of which underwent compulsory alienation during martial law, except for those liquidated by the debtor's decision.

Also, the Final and Transitional Provisions section is supplemented with paragraphs 16 and 17 as follows:

16. Temporarily, during the martial law and within two years after its termination or cancellation, it is not allowed to initiate proceedings in the case of bankruptcy of economic companies that are operators of critical infrastructure, in the authorized capital of which more than 50 percent of stakes (shares, ownership interests) are directly or indirectly owned by the state and the stakes (shares, ownership interests) which underwent compulsory alienation during martial law, except for those liquidated by the decision of the owner. 

17. Temporarily, during the martial law and within two years after its termination or cancellation, proceedings initiated in the case of bankruptcy of economic companies that are operators of critical infrastructure, in the authorized capital of which more than 50 percent of stakes (shares, ownership interests) are directly or indirectly owned by the state and the stakes (shares, ownership interests) which underwent compulsory alienation  during martial law, except for those liquidated by the decision of the owner, are subject to closure at all stages of bankruptcy proceedings (before and after the debtor is declared bankrupt).” 
According to the conclusion of the Committee of the Verkhovna Rada of Ukraine on the National Security, Defense and Intelligence dated 1 May 2023, the Committee recommends the adoption of the Draft Law No. 8316 in the second reading and as a whole.

Roman Marchenko, Ilyashev & Partners Law Firm, Ukraine.

Insolvency & Restructuring Statistics Update: Hungary

There were significant changes in the number of insolvency proceedings in 2022 due to the aftermath of the COVID pandemic and the new challenges posed by the energy crisis and the Russian-Ukrainian war. Despite implementing the Restructuring Directive, however, there has been no reported restructuring cases. Petra Springer from DLA Piper Hungary has summarised recent statistics in Hungary.

Almost twice as many liquidation proceedings (felszámolás) were commenced in 2022 than a year earlier. While in 2021, the total number of liquidation proceedings was 4359, in 2022 this figure almost doubled to 8111 based on the data published by the Hungarian Central Statistical Office.* Nearly 60% of all proceedings commenced in 2022 started in Q3/2022. By far the most liquidation proceedings were initiated in the construction sector, while the least affected sector was agriculture. This increase was attributable to a number of factors, such as the combination of the Russian-Ukrainian war and the energy crisis resulting in increased inflation, severe exchange rate volatility and a decline in economic performance. 

In September 2022, an exceptionally high number of voluntary winding-up proceedings (végelszámolás) were commenced. The significant increase in the number of these proceedings in 2022 can be clearly linked to the phasing out of the small business lump sum tax (KATA) at the end of the summer of 2022 for those entrepreneurs who have fully terminated their business activity. Within dissolution proceedings, firms dissolved through forced deregistration proceedings (kényszertörlés) dominated with 44%. Although the number of these proceedings declined during the COVID, it bounced back to pre-COVID levels in 2022, following the phasing out of the payment moratorium introduced as an economic safeguard measure during the COVID.

The number of bankruptcy proceedings (csődeljárás) also increased: from 26 filed cases in the first half of 2021 to almost double to 50 in the first half of 2022 based on the caseload data of the National Office for the Judiciary. However, the total number of bankruptcy filings still remained low. The number of bankruptcy cases completed was also well below 100, with 48 completed case in the first half of 2022, nearly three times than in the first half of 2021 with 17 completed case.

Hungary implemented the Preventive Restructuring Directive (EU) 2019/1023 by introducing Act LXIV of 2021. The purpose of the restructuring proceedings (szerkezetátalakítási eljárás) was to enable debtors to restructure effectively at an early stage and to adopt and implement a restructuring plan with creditors in order to avoid insolvency and ensure viability. Since its entry into force on 1 July 2022, however, there have been no reported cases, which may also be attributable to the fact that the proceedings may be conducted non-publicly, as well.

Further statistics from Latvia and from all jurisdictions can be found on our website here.

* Please note that the caseload data published by the National Office for the Judiciary indicates a higher number, as it includes all liquidation applications received by the courts, irrespective of whether the liquidation is ordered with a final effect on the basis of the application received.


The Pollution of Operating Sites challenged in Bankruptcy

In a forthcoming article for Eurofenix, Christel Dumont (Dentons, Luxembourg and INSOL Europe Country Coordinator for Luxembourg) with her co-author and colleague Matthieu Heitz, charts the main issues and challenges that result from the interplay between the bankruptcy legal framework and environmental duties of classified establishments in Luxembourg with high-risk polluting activities. 

The bankruptcy regime aims to liquidate assets and protect creditors, while environmental laws require site restoration, health and ecosystem protection. 

The environmental duties do not change with bankruptcy, but depend on the activity and its nuisance. A clean-up is needed when a classified establishment stops operating. However, the insolvency practitioner (“IP”) may not find buyers for the assets if the remediation is too expensive. This article explores the legal and financial consequences of environmental liability for bankrupt companies.

Christel Dumont is also member of the INSOL Europe 2023 Amsterdam Congress Technical Committee and will lead a panel session titled “Cleaning up the Mess: How to deal with contaminated assets?” at our INSOL Europe 2023 Amsterdam Congress. Don’t miss it!

Read the latest edition of Eurofenix here. The Summer edition will be available early July.

2023 Annual Congress Amsterdam - Early Bird Discount Ending Soon!

Early booking discount ends midnight 8 June!

Download the Congress Brochure • Technical Programme

With thanks to our Main Sponsor:

Academic Conference: Registration Now Open!

Early booking discount ends midnight 8 June!

Download the Conference Brochure • Technical Programme

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Richard Turton Award 2023: Submission deadline approaching!

Deadline for applications: 23 June 2023

Richard Turton had a unique role in the formation and management of INSOL Europe,
INSOL International, the English Insolvency Practitioners Association and R3, the Association of Business Recovery Professionals in the UK. In recognition of his achievements, these four organisations jointly created an award in memory of Richard. 
The 2023 competition is now open for anyone who is a national of a developing or emerging nation; works in or studies insolvency & restructuring law and practice and is under 35 years of age.

The successful applicant will be asked to write a paper of 3,000 words on a subject of insolvency or turnaround agreed with the panel. This paper will be published in summary in one or more of the four Member Associations' journals and in full on their websites. The winner will be invited to attend the INSOL Europe Annual Congress in Amsterdam, 12-15 October 2023, expenses paid. Applications deadline: 23 June 2023

For more information and to apply, visit the Richard Turton Award page here.

More joint events coming soon!

The 17th annual R3 and INSOL Europe Conference on Cross-border Restructuring and Insolvency returns to London on 15 June 2023, taking place at the sumptuous venue, No.11 Cavendish Square, a stone’s throw away from Oxford Circus. This in-person all-day conference is aimed at restructuring and insolvency professionals with an interest in cross-border matters and all professionals interested in cross-border restructuring and insolvency, including financial advisers, lenders, distressed asset investors, judges and academics.

Our President Barry Cahir will be opening the day, and there will be a panel session on Recognition of English and continental insolvency proceedings in the aftermath of Brexit led Chris Laughton (Mercer & Hole, UK). Full details can be found here.

The Young Members Group of INSOL Europe and the Insolvency Commission of AIJA are to join forces again and hold a seminar in the beautiful city of Seville from 29 June until 1 July 2023. The format will be similar to the very successful seminar on Mallorca and the technical committee is working hard to put together an attractive and special technical programme, as well as some social highlights as a frame for a wonderful weekend. 

Find out more or register your place here!

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

Please send your suggestions to Paul Newson, CEO & Communications Manager,

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INSOL Europe, PO Box 7149, Clifton, Nottingham. NG11 6WD
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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.