By Yasmine EDDAM
14 May 2025
In today's economic landscape, many businesses are organised into groups of companies: a parent company controls one or more subsidiaries, sometimes spread across different countries. While this structure offers advantages in times of growth, it becomes a real headache when the group, or one of its components, encounters major financial difficulties with a European dimension. How do you deal with the insolvency of a complex group whose entities are legally distinct but economically linked, and scattered across the EU? For a long time, European law was silent on this question. The new EU Insolvency Proceedings Regulation (No 2015/848) has finally introduced specific rules for groups, aimed at facilitating coordinated management. This article explains these important new features. Why specific treatment for groups? Previously, European law treated each company in the group as an isolated entity. If an insolvency procedure was...
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