Allianz’s PIMCO and Legal & General Group (L&G) face a high-stakes lawsuit in the English High Court over the future of Brussels' iconic €1.2 billion Finance Tower. The skyscraper’s ultimate owner, South Korea-listed JR Global REIT, collapsed into insolvency in April, triggering a bitter dispute between the lenders and the property's management.

The lawsuit accuses PIMCO and L&G of exerting "undue pressure" on property valuers in an aggressive attempt to freeze the tower's rental income. In response, the insolvent owner's representatives filed legal actions in both London and New York to stall the lenders’ alleged aggressive financial manoeuvres. 

The 142-meter building represents one of the most significant real estate battles currently playing out in European commercial courts, highlighting growing tensions between major institutional lenders and struggling global property investment vehicles.

Read the latest at Insurance Journal

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Volkswagen CEO Thomas Schäfer recently outlined a ‘fundamental transformation’ of the brand’s business model as rising costs, weaker demand, Chinese competition, and U.S. tariffs put pressure on profits. As at early May 2026, the company plans deeper cost-cutting measures beyond its existing restructuring programme, which already includes tens of thousands of job cuts in Germany and lower production targets. 

VW aims to simplify its product lineup and reduce the number of platforms and variants to improve efficiency while maintaining vehicle quality. CFO Arno Antlitz said the company needs structural and sustainable changes, including faster technology development and quicker decision-making. Several VW brands, including Audi and Porsche, saw declining sales in early 2026, while Skoda was the only major brand to grow. The automaker is also trying to accelerate EV development and adapt to a rapidly changing and challenging global auto market, focusing investment on high-margin vehicles and high-demand segments, rather than its traditional portfolio of niche models.

Read more at Motor1

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The French menswear brand Balibaris has filed for safeguard proceedings (procédure de sauvegarde) to restructure its financial debt. This legal move aims to protect the company while it continues its operations, allowing management to reorganize liabilities and ensure long-term viability.

Founded in 2010 and known for its ‘affordable luxury’ aesthetic, Balibaris has faced significant headwinds typical of the current retail climate, including rising costs and shifting consumer behavior. The filing follows a period of expansion that saw the brand grow to over 70 points of sale, primarily in France and the UK. 

By entering this court-monitored process, the company gains a temporary stay on debt repayments, providing the time required to negotiate with creditors and refine its business model without the immediate threat of liquidation.

Read more at Modaes

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In early April, Betz International, a key subsidiary of the historic Willi Betz Group, filed for preliminary insolvency with the Tübingen court. Despite holding a robust order book, the Sonnenbühl-based logistics firm has succumbed to a perfect storm of macroeconomic pressures. Management cited an "unprecedented cost explosion," specifically record-high diesel and energy prices, alongside fierce competition from lower-cost foreign carriers. Additionally, a sharp downturn in German industrial production across the automotive, chemical, and construction sectors significantly reduced freight volumes. 

Interim administrator Dr. Dirk Poff is currently evaluating the company’s assets to determine restructuring viability for its 140 employees. This filing serves as another stark indicator of the structural crisis facing mid-sized German hauliers, who are battling rising tolls, high fixed costs, and the withdrawal of pandemic-era state support. The insolvency affects only Betz International; other group entities remain operational.

Read more at Trasporto Europa

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Administrators in a UK construction insolvency case are attempting to access project bank account (PBA) funds to recover money for their fees, prompting debate over the protection of ring-fenced payments intended for subcontractors. 

This case highlights wider tensions in the construction sector between insolvency priorities and payment mechanisms designed to safeguard supply chain firms. PBAs are intended to ensure transparent and direct payment flows, but administrators are now assessing whether remaining balances can be redirected to cover legal and administrative costs. 

The situation raises concerns about whether current protections are strong enough in a financially stressed construction industry, particularly over how protected funds are handled when companies go into administration and whether subcontractors remain fully safeguarded under project bank account arrangements.

Read more on this situation here

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