In 2024, Europe experienced a significant restructuring landscape, though not the wave of insolvencies some had predicted. Analysts foresee a prolonged down-cycle without extreme fluctuations, partly due to covenant-lite structures and available investment funds. Covenant-lite terms and debtor-friendly insolvency laws have enabled companies like Altice and Ardagh to pursue aggressive liability management transactions, a trend that may grow in 2025. However, uncertainty remains over the viability of these transactions following the Serta ruling in the US.

The UK’s Part 26A restructuring plan (RP) remained the preferred restructuring tool, with key cases such as Adler and Thames Water shaping legal precedent. RPs continued to be used to cram down creditors, including landlords, in cases like Cineworld and Virgin Active. As RPs become more common, courts have reinforced the importance of proper litigation strategies when challenging them, with cases like Chaptre Finance highlighting the need for expert evidence and procedural compliance.

Beyond restructuring plans, liability management transactions became more prominent in Europe, with creditors using cooperation agreements to counteract aggressive debt moves. Additionally, financial distress in key sectors, such as the UK’s privatised water industry and higher education, could lead to further restructuring activity in 2025. Thames Water’s RP and the financial struggles of universities, exacerbated by rising costs and reduced student enrollment, are expected to be major focal points in the coming year.

Read the full article at Cadwalader which includes examples and full references

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The insolvency of Ÿnsect, a French insect protein start-up, represents a major failure for both private investors and France's Deep Tech ambitions. Despite being hailed as a model for public-private partnerships, the company's inability to scale its industrial production plant, Ÿnfarm, led to a critical "cash flow deadlock." This collapse undermines the government's strategy to foster science-based start-ups for economic re-industrialization.

Bpifrance, the French public investment bank, is among the hardest hit, having invested over $30 million directly in Ÿnsect since 2016, alongside indirect contributions through various financial mechanisms. This substantial public investment makes Ÿnsect's failure a significant blow to the government's innovation strategy. Private investors, including Astanor Ventures, Upfront, and Eurazeo, also face substantial losses, with Astanor alone investing around $32 million.

Furthermore, Ÿnsect's $126 million debt from private banks, including state-linked institutions, adds to the financial fallout. With minimal repayments, creditors are likely to incur significant losses, highlighting the broad financial repercussions of the company's collapse and the risks associated with investing in ambitious, large-scale Deep Tech ventures.

Read the full story at Sifted.eu

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Xerotech, an electric vehicle battery firm, has entered liquidation just months after planning to raise up to €30 million. The Irish company, founded by Barry Flannery, had already secured €44 million in investment and employed over 130 people. Xerotech produced batteries for industrial vehicles and served around 40 clients.

The liquidation follows a devastating fire at Xerotech’s manufacturing facility in Claregalway, Galway, which took three days to control. This was the second fire at the facility since 2022, further damaging the company’s ability to attract investors. A recent statement attributed the fire to significantly impacting its capital-raising efforts. As a result, employees, creditors, and shareholders were formally notified about the company's winding-up process, which includes seeking potential buyers for its assets.

EY-Parthenon’s Luke Charleton and Alan Large have been appointed as joint liquidators, and have emphasised their commitment to ensuring site safety and facilitating a structured transition for employees and stakeholders.

Full story in The Irish Times

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In 2024, Belgium experienced the highest number of bankruptcies in recent years, with 12,097 companies closing down, marking a nearly 5% increase compared to 2023. This resulted in over 27,000 job losses, with the construction sector being hit hardest.

The bankruptcy rate in Belgium was highest in Antwerp and Brussels, with Antwerp having 1,776 bankruptcies and Brussels following closely with 1,599. The construction, trade, and hospitality sectors were the most affected, with 2,816, 2,540, and 2,085 bankruptcies respectively, due to decreased demand.

While the risk of bankruptcy remained relatively low at 0.95%, slightly above pandemic levels, experts predict no drastic changes in the coming year. Factors such as political instability, geopolitical tensions, and economic conditions in key trading partners like Germany may impact the future outlook.

Read more in The Brussels Times

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Sara Davies, a Dragons' Den star, purchased Crafter's Companion for £425,000 earlier this year, after the company faced £16.7 million in debt and went into administration. She saved 134 jobs out of 148, but one store in Derbyshire had to close.

Before the buyout, Sara had given control of Crafter's Companion to Growth Partners, an investment group holding £8.2 million in loan notes. Despite the buyout, these loans will likely result in no return for Growth Partners, and Santander is owed nearly £1.9 million.

The report from administrators Interpath says: “The company was loss-making, recording a loss before tax of £6.7m and £5.1m in the years ended 31 March 2024 and 31 March 2023 respectively.

The company's financial troubles stemmed from long-term declining sales and significant losses. In November 2024, Crafter's Companion faced severe cash flow issues. At the time of administration, the company had about 200 trade creditors, including suppliers in China and the US.

Read the full story in Business Live

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