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Industry News from INSOL Europe
15 May 2025
The Dutch plastic recycling sector is facing a sharp rise in bankruptcies, with auction house Troostwijk Auctions reporting a 150% increase in related auctions, compared to the previous year. This surge is attributed to high production costs, regulatory uncertainty, and increasing international competition, particularly from cheap virgin plastic imports from the US and China. Low demand for circular products has further exacerbated the situation.
Notable insolvencies include the Dutch branch of Danish artificial turf recycler Re-Match, despite prior government subsidies. Other companies like Umincorp, PVC Recycling Lelystad, and Stiphout Plastics also collapsed in late 2024. Experts warn that without new measures, such as restricting virgin plastic imports and enforcing stricter blending requirements, the Netherlands' circular economy ambitions are at risk. Setting up circular businesses proves challenging due to heavy investments and complex logistics.
02 May 2025
French firearms manufacturer Verney-Carron, owned by CYBERGUN, has declared bankruptcy due to a complete freeze of its finances, halting production and salary payments. The company carries a debt of €1 million despite a €12 million investment from its parent company. A court hearing to confirm insolvency is expected on February 12, 2025, as the company seeks a new shareholder.In 2023, Verney-Carron signed a €36 million deal with Ukraine for 12,000 assault rifles and 600 grenade launchers, with initial deliveries expected in early 2024. However, it is unclear if the contract was fulfilled due to the company's financial problems and delivery delays that began in 2021.
Subsequent to this original article - as published here in ici - formerly FrenchBleu (in French) the Saint-Etienne Commercial Court confirmed the placement in receivership of the arms manufacturer Verney-Carron on February 12 2025.
Read the original article at Militarnyi
27 April 2025
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
24 April 2025
Gerry Weber, a German women's fashion brand, has filed for insolvency again, aiming to restructure and continue operations. The court-appointed administrator is Lucas Flöther, and restructuring expert Christian Gerloff has joined the management board. All 32 stores and 11 outlets in Germany will remain open, and its 230 employees are unaffected for now. The filing is attributed to weak consumer demand and rising costs across Europe.
Despite previous restructurings in 2019 and 2023 - including major store closures and job cuts - further strategic adjustments are needed. Founded in 1973, Gerry Weber joins other struggling retailers like Galeria, Esprit, and Sinn amid a tough retail climate and strong online competition.
20 April 2025
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