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INSOL Europe news and offers
June 2022


Dear Members

At the time of writing my brief editor’s note, I am on my way back from INSOL International’s congress in London. It was very good to meet in person again and catch up with many friends from around the globe, to hear from seasoned industry experts but also learn of new and emerging themes and trends. Lots to think about and to ponder, lessons to be learned. And deadlines to meet!

It is very fortunate therefore that travel is providing little comfort or entertainment these days but ample opportunity to just stand still for indefinite periods of time and reflect on life, business and the world at large and to draft my intro as I am waiting to get through security. In fact, given the length of the queue here at Heathrow Airport and the speed (I am using the word loosely) it is progressing, I would have been able to write a trilogy of the size of the Lord of the Rings (albeit not of its quality). 

Irrespective of my own adventures and misfortunes, I invite you to enjoy this month’s collection of articles, briefs and legislative updates. My heartfelt thank you to the authors who have devoted their time and efforts to contribute to this edition. I am sure you will find it a very good read, providing you with technical updates and generally helping you to keep your finger on the pulse of all things restructuring and insolvency.

As always, I hope wherever you are reading this, you are staying safe and well. 

Now, where is my bag?

Frank Tschentscher
President INSOL Europe




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.

Annual Congress 2022 - Dubrovnik - Early Bird Rate Ending Soon!


Registration is now open for our
Annual Congress in
 Dubrovnik, Croatia!

Download the Congress brochure here

One week until the early booking deadline: 6 July 2022

We are very pleased to announce that we have four keynote speakers making presentations during the programme: Boris Vujčić (Governor of the Croatian National Bank), Fabris Peruško (Extraordinary Commissioner for Agrokor, Croatia), José Garrido (Senior Counsel in the IMF’s Legal Department) and Lord Justice Snowden (Court of Appeal, England & Wales). Visit our website for more details, registration fees and hotel booking links.

Our Academic Forum Annual Conference will take place from 5-6 October 2022 at the same venue. Registration for that event is now also open.



With thanks to our Congress Main Sponsor:

Council Elections 2022: Your Opportunity to Join our Council

This is the time of year when we consider retirements from and elections to our Council. 

Countries with 30 or more members are entitled to a reserved seat on Council and in October this year, vacancies will arise for the following seats: Poland, Romania, Austria, Denmark, Switzerland and The NetherlandsMembers from these countries will have received an email requesting nominations for candidates from their country. 

In addition, 4 general (non-reserved) seats will become available, which may be occupied by a member from any country.

Details about the role of Council Members can be found here.

If you have not yet received email notification of the election process, please contact Paul Newson.

Stats Update: Current Business Failure Rates at Artificially Low Levels

The analysts at Dun & Bradstreet Worldwide Network (WWN) have prepared a 2021 Global Bankruptcy Report that’s covers bankruptcy data from 43 economies.

Nearly half of them saw a decrease in business failures during 2021. In some countries, business failures reached their lowest level in a decade. Much like 2020, when business disruption rose to unprecedented levels, Covid-19 dominated the narrative in 2021. Sporadic increases in cases across many countries prompted mandatory shutdowns and continued to wreak havoc on businesses.

Data from the Dun & Bradstreet Commerce Disruption Tracker shows that the percentage of businesses disrupted globally increased by 4 percentage points in the first half of 2021 compared to the second half of 2020. As a result, the precipitous fall in business failures may appear counterintuitive. But there are several factors that have helped thousands of businesses keep their heads above water.

Undoubtedly, one of the biggest factors that helped many firms stay afloat was the massive support packages provided by governments across the world. While many of the measures were announced in 2020, they were also extended beyond this period. Cumulative fiscal measures in response to the Covid-19 pandemic account for 18% of the global Gross Domestic Product (GDP), according to data from the IMF.

Much of this stems from advanced economies, which on average have provided fiscal support to the tune of 28.4% of their GDP. By comparison, stimulus packages provided by these economies in response to the Global Financial Crisis of 2008 were worth just 2.6% of their GDP.

To read the complete Global Bankruptcy Report, download the report here.


Implementation of the EU Directive in Estonia: Changes Coming

On the 1 June 2022 Estonian Parliament (Riigikogu) passed major changes in insolvency laws and its related legal acts on implementing the Directive (EU) 2019/1023 of the European Parliament and of the Council. The changes will enter into force already on the 1st of July 2022. 

In order to implement the Directive, Estonia has chosen to reform current insolvency laws for natural persons so that there will be an entirely new Act in place – namely the ‘Natural Person’s Insolvency Act’ - which will abolish the 11- year old ‘Debt Restructuring and Debt Protection Act’. Natural persons’ bankruptcy proceedings will still remain regulated by the Bankruptcy Act. 

The aim of this reform is to make debt counselling and insolvency proceedings for natural persons much more efficient, less costly, speedier, digitally modern and more convenient and better understandable for debtors. For instance, there will be one application form for natural person’s insolvency proceedings. With the same application form one can apply for debt restructuring, debt discharge or bankruptcy, if required.

The debt counselling system for natural persons will be entirely reformed as it has been fragmented in the past. There will be only one appointed trusted person to guide the debtor through all procedures needed. 

The debt discharge period for honest debtors will be three years as a rule stipulated by the Directive. Exceptions can be applied only upon discretion of the court in particular case in hand. 

Estonia will also amend and supplement relevant laws for entrepreneurs and legal entities such as the Reorganisation Act, Bankruptcy Act and Commercial Code. All mandatory, and most of the voluntary provisions stipulated in the Directive will be taken over to Estonian legislation, for instance special provisions of claims, adding more creditor groups, having more flexibility to adopt and change the restructuring plan, enabling interim financing in bankruptcy proceedings, etc.

In addition, the reorganisation (restructuring) proceedings will be made public as bankruptcy proceedings are now via a portal for official notices (called Ametlikud Teadaanded). 

Lastly, the profession of reorganisation (restructuring) advisors will be regulated from now on with mandatory training and membership fees.

A more detailed update by our Country Coordinator for Estonia Signe Viimsalu (SiGN9 OÜ, Estonia) will be published in Eurofenix.

Inside UNCITRAL Working Group V nr60, New York

Springtime in New York…although not many of the delegates and observers shared the joy of this trip to the Big Apple given the hybrid approach taken this year due to the continuing impact of COVID, many did attend in person to enjoy once again the camaraderie and fellowship with colleagues from all over the world, reports our INSOL Europe WGV Observer Jenny Gant (University of Derby, UK)​.

During this session, the UNCITRAL Working Group V met to discuss firstly a few updates on the UNCITRAL Model Law on Cross-Border Insolvency: the Judicial Perspective. This document aims to acknowledge the international origin of the Model Law on Cross-Border Insolvency and to promote the uniformity in its application.

The updates to the Judicial Perspective cover developments by other international bodies as well as interpretations of the MLCBI by judiciaries across the world. The Updates proposed were accepted with a few additions during the session.

The second important topic on the agenda revolved around the introduction of some kind of harmonising instrument that deals with civil asset-tracing and recovery in insolvency proceedings. Finally, the Working Group considered the topic of applicable law in insolvency proceedings. Download the full report here and find previous 'Inside Stories' on our website.

The Perfect Storm: Energy Sector in Crisis

Unprecedented high energy costs are striking European energy markets since late 2021. Historically, EU Natural Gas reached an all time high of 345 EUR/MWh in March of 2022. According to Trading Economics’ global macro models and analysts expectations, EU Natural Gas is expected to be traded at 91.39 EUR/MWh by the end of this quarter and at 124.37 EUR/MWh in 12 months time. Futures markets are pricing European gas at three times their 2021 levels for (at least) the next three years. In sum, households and industry are being punched full in the face.

This energy price surge is the outcome of several factors, notably the post Covid-19 rise in global demand, carbon pricing and, more recently and relevantly, the Russian invasion of Ukraine.

As newspapers keep reminding us daily, Russia has historically been the European Union’s (EU) largest supplier of natural gas. In fact, in 2021, the EU imported an average of over 380 million cubic metres per day of gas by pipeline from Russia. This corresponds aproximately to 45% of EU gas imports in 2021 and almost 40% of its total gas consumption.

Considering the dearth of Russian gas supplies, the EU Energy Commissioner has started to take measures to try to mitigate the impact of high energy prices, notably, by presenting a proposal to revise gas supply regulations to improve coordination among member states over gas storage and getting in touch with partners to try to replace Russian gas supplies from alternative sources and, consequently, boost EU gas supplies.

Nonetheless, will these measure be sufficient? What is the path Europe should take to get out of this crisis?

Eduardo Peixoto Gomes (Abreu Advogados, Portugal) will answer these questions in the Summer edition of Eurofenix.


Implementation of the EU Directive in Denmark: Main Points

In-court restructuring, discharge of debt, and disqualification are already part of the Danish Bankruptcy Act, and a temporary early warning system exits. The Implementation complements the in-court restructuring regime rather than introducing a new regime.  

Preventive restructuring procedure:
Restructuring is now feasible also in case of only likelihood of insolvency. Notification to creditors and the public as well as appointment of an administrator will only be mandatory if a stay is granted by the court. 

Preventive restructuring is only applicable to a person that carries business activities or a company. The debtor (not a creditor) may file. A more extensive access to withdraw from the procedure without an automatic bankruptcy.

The purpose of the restructuring:
In addition to a business transfer and/or a voluntary composition, the purpose may also be "other tools", e.g. write-down of existing shares and subscription for new shares.

Class formation and cross class cram-down:
Prior to the Implementation, claims of the unsecured creditors are in the same class, votes cast (creditors related to the debtor excepted) according to the amount of the respective claims. The Implementation introduces class formation, a vote will be between the classes rather than the creditors individually and the majority (number) of the classes will decide the vote.
For SMEs, class formation is voluntary (mandatory for large companies). Class formation must be based on a sufficient commonality of interest between the creditors - e.g. tax claims, financial creditors, other unsecured creditors. Class formation applicable only to a vote for the approval of the final restructuring plan (in Danish: "rekonstruktionsforslag"). 

Mutual contracts:
Prior to the Implementation a debtor under bankruptcy or a restructuring procedure may continue mutual contracts (despite payment default re. period prior to opening). Contracts for ongoing deliveries; payment (as a preferential claim) only for deliveries relating to the period following the opening of such proceedings - despite agreed ipso facto-clauses. Under a preventive restructuring mutual contracts may be continued but a default (re. period prior to the opening) entitles to termination expect if a stay is granted. 

Early warning system:
The temporary early warning system becomes permanent. 

A more detailed report by our Council member and Country Coordinator for Denmark Michala Roepstorff (Plesner Law Firm, Denmark) will follow in Eurofenix.

Annual Congress 2023: Amsterdam - Co-Chairs Announced!

Already we have started planning our 2023 Congress, which next year will be held in Amsterdam from 12-15 October 2023.

We are pleased to announce that our Council member, Membership Development Leader and Country Coordinator for The Netherlands, Alice van der Schee (Van Benthem & Keulen, The Netherlands) and our Anti-Fraud Forum Co-Chair Carmel King (Grant Thornton, UK) have been appointed as Co-Chairs and will be forming a Technical Committee soon. 

As a reminder, all INSOL Europe members are invited to express their interest to participate as speakers at our flagship event and if you are interested, we encourage you to contact our Chief Technical Officer Emmanuelle Inacio as soon as possible.

ERA Summer Course on European Insolvency Law

The Academy of European Law (ERA) is hosting its annual summer course on European Insolvency Law from 14 July 2022 – 16 July 2022 in Trier.

This three-day course gives a thorough introduction to cross-border insolvency law. Besides the up-to-date teaching content, the course includes a varied social programme.
INSOL Europe members can benefit from a 25% discount off the course fee. Select the price for voucher code holders and enter the code 2022insolvency when prompted. 
Full details and booking on the ERA website.


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

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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.