The Restructuring Corner: What Happens When Trouble Hits? panel brought together a diverse group of experts — legal, financial, and banking — to unpack the latest developments in European cross-border restructurings, particularly in the wake of the EU Restructuring Directive. The moderator was David Ampaw, partner, DLA Piper UK and panelists included Saskia Heumakers, partner, London, NautaDutilh, Paula Langridge, head of UK Asset Based Lending, Bank of America, Paul Richards, senior director, Alvarez & Marsal and Christian Säuberlich, senior managing director, FTI Consulting.

Säuberlich set the stage by highlighting the broader macroeconomic pressures currently driving financial distress: war in Ukraine, energy price volatility, labor shortages, and continued fallout from global trade tensions. These pressures have translated into a marked increase in insolvencies since 2022, with Germany’s automotive and related industries being particularly hard-hit.

Heumakers shared valuable insights from the Dutch market, where experience with the WHOA - the Dutch restructuring plan - has matured significantly since its introduction in 2021. While the early years saw mostly SME restructurings, 2024 marked a turning point with several major large-cap restructurings, including Diebold, IHC, Vroon, McDermott, and Steinweg. In total, the Netherlands has seen about 60 WHOA plans filed over four years. Germany is seeing a similar trajectory with its StaRUG procedure - rising from 20 plans in its first year to over 100 in 2024.

Heumakers also noted an important legislative shift expected to enhance the Dutch asset-based lending landscape: as of this summer, bans on assignment will no longer be enforceable in most cases. This change will significantly ease receivables financing in the Netherlands by removing the need for cumbersome due diligence on assignability - good news for both lenders and borrowers.

The key takeaway from this panel is that Europe’s restructuring toolkit is evolving rapidly, and market participants are becoming more confident in using new procedures to navigate uncertain times.