Europe has struggled mightily during the last several years to triage a long series of critical blows to the economies of the 28 countries that comprise the European Union, as well as the collective viability of eurozone economies. Here we provide a snapshot of some recent developments regarding insolvency, restructuring, and related issues in the EU. 

In December 2012 the European Commission issued a policy communication called “A new European Approach to Business Failure and Insolvency” and a proposal to amend the EU Insolvency Regulation

The proposed new European approach to business insolvency focuses on helping sound business to survive, while at the same time protecting creditors’ rights.

European Commission Work Programme

2013 will herald some significant changes to the UK legal arena, notably in the corporate area in relation to executive remuneration and narrative reporting, in dispute resolution as the Government's reforms to the civil litigation costs and funding regime are due to be implemented and in the energy, real estate and construction areas where there are major changes to the carbon reduction commitment energy efficiency scheme, further amendments to the Community Infrastructure Levy Regulations, the introduction of the Growth and Infrastructure Bill and various amendments to the Building Regula

The financial crisis following the collapse of Lehman Brothers and the subsequent sluggish European economy have thrown a spotlight on European Union (“EU”) state aid rules and, in particular, the circumstances under which governments can and will intervene to support a firm in difficulty. This article looks beyond the banking sector and provides an overview of the rules governing state aid to all other firms in difficulty.

State Aid—The Basics

Depuis 2008, le groupe Dexia a bénéficié d’aides publiques qui ont été soumises à l’examen de la Commission et qui ont été autorisées par celle-ci en février 2010 sous la condition de la réalisation d’un plan de restructuration. Compte tenu des nouvelles difficultés rencontrées par Dexia, le groupe n’a pas été en mesure de respecter son engagement ni de rétablir sa viabilité à long terme.

In the wake of the Eurozone crisis, harmonisation of European insolvency law has been firmly on the political agenda. In December last year, the European Commission proposed amendments to the European Insolvency Regulation (EIR). The UK has until 10 April 2013 to decide whether to opt in. Luci Mitchell-Fry and Sarah Lawson consider the proposed amendments of most interest to banks and other lenders.

Include schemes of arrangement (Schemes)?

Europe has struggled mightily during the last several years to triage a long series of critical blows to the economies of the 27 countries that comprise the European Union, as well as the collective viability of eurozone economies. Here we provide a snapshot of some recent developments relating to insolvency and restructuring in the EU.

The European Court of Justice (the “ECJ”) this morning delivered its ruling in the case of Hogan and Others v Minister for Social and Family Affairs, Ireland, Attorney General (the “Waterford Crystal case”). The Court held that Ireland has failed to fulfil its obligations under Article 8 of Directive 2008/94 EC (the “Directive”) on the protection of employees in the event of the insolvency of their employer.

In a long awaited landmark judgment, The European Court of Justice has today found in favour of ten former Waterford Crystal workers who alleged the Irish State had failed in their obligations to correctly implement European Directive 2008/94EC ('The Directive’) on the protection of employees in the event of the insolvency of their employer.