On 25 March 2025, a UK court approved restructuring plans for Enzen Global Limited and Enzen Limited, addressing key legal and commercial issues. The judgment welcomed HMRC’s active participation and support - marking a significant strategic shift in its restructuring approach - and upheld deviations from the pari passu principle by allowing flat payments to unsecured creditors, as all were out of the money in an alternative scenario. 

The judge also endorsed shareholders retaining equity, as they had effectively become owners through a prior debt-for-equity swap and contributed new funding. Recognition in Spain was deemed reasonably likely. The case offers valuable precedent on creditor treatment, equity retention, and the flexibility of UK restructuring law, especially under Part 26A. It confirms that fairness can be maintained even with non-traditional value distribution methods, provided they are commercially justified and proportionate.

Read the full story at Freshfields

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EUROINS Romania’s appeal against its bankruptcy has been rejected by the Bucharest Court of Appeal, confirming its insolvency. The ruling upholds the Bucharest Tribunal’s June 2023 decision, which initiated bankruptcy proceedings after the insurer’s operating license was revoked in March 2023 for insolvency. EUROINS had struggled financially since 2022, failing to meet required solvency and capital requirements. 

The Financial Supervisory Authority (ASF) had imposed 26 sanctions on the company from 2020 to 2023. Once a market leader with a 27% share of Romania’s compulsory motor insurance market, EUROINS’ collapse marks the fourth major bankruptcy in Romania’s insurance sector in recent years, following ASTRA, CARPATICA, and CITY Insurance. More than two million active RCA policies remain as proceedings continue.

Full article here

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In a sign of rising US-style creditor conflicts in Europe, distressed debt specialist Redwood Capital took control of the Dutch retailer Hunkemöller earlier this month, through a controversial debt restructuring process involving super-senior debt and bond swaps. This move has triggered a legal challenge from a rival group, which has claimed that it has violated bondholder rights. 

The demise of Hunkemöller, one of the largest lingerie brands in Europe, has been attributed to rising inflation, global supply chain disruptions, the aftermath of the pandemic, and the ongoing war in Ukraine.

Redwood's strategy, seen as highly contentious, highlights the growing trend of creditor-on-creditor conflicts in European markets. Read more on this report here.

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This blog post from the European Association of Private International Law (EAPIL) blog on March 31, 2025, analyses a recent judgment by the Court of Justice of the European Union (CJEU) concerning Article 31 of the European Insolvency Regulation. 
 
Authored by Professor Antonio Leandro, Professor of Public and Private International Law at the University of Bari (Italy), the piece explores the Auto1 European Cars case, which clarifies how payments made to an insolvent debtor by unaware third parties are treated, especially when the obligation arose after insolvency proceedings commenced. 
 
The ruling sheds light on the association between Article 31 and the law of the state where insolvency proceedings are opened (lex concursus), in determining the enforceability of such transactions and the scope of Article 31's protection.
 
Read the full blog post here

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