European Union: Financial Restructuring

Pre-insolvency restructurings can fail when individual creditors block viable solutions to negotiate better outcomes. The insolvency plan's cram-down mechanism enables court confirmation despite dissenting votes, provided dissenting groups receive legal protection and aren't unduly disadvantaged. Understanding cram-down logic helps stakeholders assess restructuring options and risks before insolvency occurs.

Toda & Nel-lo sponsored the National Restructuring Congress organised by Tirant Formación, where Manuela Serrano spoke as a panellist addressing the main challenges of the current corporate restructuring framework.

Law 4738/2020 introduces critical mechanisms for debt restructuring in Greece, fundamentally transforming how debtors can recover tax and social security clearance certificates. The regulatory framework presents two distinct pathways—the Out-of-Court Debt Settlement Mechanism and the Rehabilitation Agreement—each offering different advantages for unlocking transactional capacities and ensuring business viability through varying withholding requirements and clearance certificate provisions.

Late payments are the quiet tax on business. They erode working capital, force firms to borrow and, in the worst cases, turn a profitable contract into a loss. In Malta – as elsewhere – creditors have more leverage...

In its judgement of 25 February 2026, in the names of Keith Farrugia vs. Dragonara Gaming Limited, the Court of Appeal confirmed that a redundancy arising from a genuine restructuring...

Whether you are a company manager, a foreign entrepreneur, or an investor, sooner or later you might face an issue of debt collection in Poland.

While rarely discussed publicly, this question is relevant to high-net-worth individuals, family offices, and corporate entities that manage international trusts through Cyprus.

Summary: The amendment of Article 7 of Law 4738/2020 (scope of application) by Article 75 of Law 5043/2023 resolved a major asymmetry in the Greek out-of-court debt settlement mechanism.

Liability Management Exercises (LMEs) are increasingly shaping the European restructuring landscape.