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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In this global insolvency report from Allianz report from 18 March, 2025, a continued rise in global business insolvencies is expected. 
 
The rises expected are 2025 (+6%) and 2026 (+3%) after a +10% surge in 2024, driven by delayed interest rate cuts, economic uncertainty, and geopolitical tensions. 
 
The US saw the sharpest rise in 2024 (+22%), with the Eurozone also accelerating (+19%), particularly in Germany (+23%) and Italy (+45%). The UK experienced a decline (-5%), while China saw a trend reversal (+3%). North America and Asia will drive insolvency growth in 2025, with Western Europe facing its fourth consecutive increase. Business failures will put 2.3 million jobs at risk globally in 2025. 
 
High interest rates could further tighten credit, increasing default risks, while a trade war could add +8% to global insolvencies. Europe’s rising defence spending may mitigate some risks but benefit limited sectors. Regulatory changes in the EU could structurally increase insolvencies in weaker regions, while stricter payment terms could exacerbate liquidity shortages.
 
Read their summary of key findings and download the full report at Allianz

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Luxembourg implemented EU Directive 2019/2121 on cross-border corporate mobility with a new law effective March 2, 2025, applying to transactions with terms published from April 1, 2025. This aligns Luxembourg with EU standards, providing a secure legal framework for cross-border conversions, mergers, and demergers involving Luxembourg SAs, SCAs, and SARLs. Key changes include:

• Minority Shareholder Rights: Opposing shareholders can exit with monetary compensation; remaining shareholders can dispute share exchange ratios.
• Creditor Rights: Creditors can seek court-ordered securities within three months of draft terms publication.
• Shareholder Communication: Management must provide a detailed transaction report, waivable by unanimous shareholder agreement (not applicable to single-shareholder companies).
• Employee Communication: Management must report on the transaction's impact on employees, unless the company and subsidiaries have only management as employees.
• Independent Expert Evaluation: An auditor assesses the fairness of exchange ratios and cash compensation, waivable by unanimous shareholder agreement (not applicable to single-shareholder companies).
• Anti-abuse Oversight: Notaries verify procedural compliance before transaction completion.
• EU Migration: Cross-border conversions (migrations) are subject to similar rules and a one-month waiting period.

The law also simplifies procedures for national transactions and non-EU cross-border transactions, including streamlined mergers for sister companies and reduced requirements for single-shareholder companies and non-EU deals.

Read the full article at MOLITOR Avocats à la Cour

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Romania's Energy Minister assures that the Iernut gas-fired power plant, which is 97% complete, will be completed despite potential insolvency of Spanish builder, Duro Felguera. Direct payment of subcontractors by Romgaz is a key solution. The project, initiated in 2016 and stalled in 2019, faces a June 2 2025 deadline.

Romanian Minister of Energy, Sebastian Burduja, emphasized zero tolerance for further delays, citing Duro Felguera's financial woes and pre-insolvency proceedings. General Electric's agreement to resume contracts is crucial. Romgaz and the Ministry will prioritize project completion, with detailed deadlines and responsibilities set.

Duro Felguera's pre-insolvency hinges on a debt-to-equity conversion, which requires state approval. Failure of this risks insolvency, jeopardizing June commissioning deadline, which has already been extended by six months. The minister guarantees all efforts to complete the plant.

Full story here.

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