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Bucharest Tribunal’s June 2023 decision, which initiated bankruptcy proceedings after the insurer’s operating license was revoked in March 2023 for insolvency.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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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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