MANAGING COUNTERPARTY INSOLVENCY RISK

Exclusive invite-only event, Chatham House Rule

13 March 10:00 CET

Agenda

10:00 Welcome
10:05 Participants’ round of introduction
10:15 Keynote: 
10:50 Open discussion
  • Think thank
  • Deepening of the discussion
  • Sharing best practices
11:45 Final thoughts

Understanding and managing counterparty insolvency risk is an increasingly significant concern for senior lawyers in Europe, particularly in light of fluctuating economic conditions and evolving legal frameworks. The key challenge lies in identifying and mitigating potential risks in financial transactions, a task that requires acute awareness of the changes in both national and European Union insolvency laws. These legal shifts, such as the amendments to the EU Insolvency Regulation, necessitate a strategic approach to counterparty risk, emphasizing early detection of insolvency signs and a thorough understanding of each jurisdiction’s unique legal environment.

 

At the forefront of this strategy is the implementation of comprehensive due diligence and continuous monitoring processes. These measures are not static; they require ongoing adaptation to the financial health and operational resilience of counterparties. For lawyers, this means not only assessing current financial standings but also staying vigilant to any changes that may signal impending insolvency. Moreover, the intricacies of cross-border insolvency proceedings in Europe add another layer of complexity. Navigating these requires familiarity with the specific legal nuances and recent case law across different European jurisdictions, ensuring preparedness for any insolvency scenarios that may arise.

 

To effectively manage these risks, lawyers must also focus on crafting strategic contractual protections. This involves the integration of clauses that allow for early termination, demand assurances, and facilitate set-off and netting arrangements. The use of collateral and security interests may also serve as vital safeguards. However, these legal instruments must be carefully tailored to be enforceable under the varying insolvency regimes across Europe. This introduction to managing counterparty insolvency risk underscores the necessity for a proactive, informed approach. The subsequent discussion will delve deeper into specific legal strategies, case studies, and practical steps that senior lawyers can take to safeguard their clients’ interests in the face of counterparty insolvency.

Speakers

100874

Dr. Alexandra Schluck-Amend
Partner
CMS

glen flannery

Glen Flannery
Partner
CMS

JEHA_website

Jean-Luc Hagon
Senior Associate
CMS

Registration

Participation is organised on an invite-only basis.

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DISCUSSION MATERIALS

The components used during the roundtable can be downloaded by clicking the links below.

Presentation: European M&A Trends 2023

CMS European M&A Study 2023

CMS European M&A Outlook 2023

Roman Tarlavski

Stefan Brunnschweiler

Venue


Hotel Riu Plaza España
C.Gran Vía, 84, 28013 Madrid, Spain

Dr. Alexandra Schluck-Amend
Partner
Certified lawyer for insolvency law | Head of Restructuring and Insolvency Group
CMS Germany

With a focus on corporate and insolvency law Alexandra Schluck-Amend is an expert on reorganising and restructuring companies with or without insolvency proceedings. She prepares and implements restructuring plans and insolvency plans in accordance with the German Insolvency Code and advises groups on internal and external financings and restructurings and on distressed M&A deals. In this context, her work often revolves around avoiding liability risks for the parent company, other group companies and their management in the event of subsequent insolvency proceedings or the sale of a group company. She also advises on insolvency-related clawback and avoidance actions and strategies to minimize these risks and gives advice to creditors regarding the best way possible to protect their interests on the crisis of a business partner. Alexandra has a special automotive sector expertise.

Alexandra joined CMS in 2002 after studying economics and law and having worked within the field of insolvency administration and was made partner in 2008. Since 2002, she has been teaching at Heidelberg University and since 2005 also at Andrássy University Budapest where she was appointed Honorary Professor in 2013.

https://cms.law/en/deu/people/alexandra-schluck-amend

 

Glen Flannery
Partner
CMS UK

Glen is a Partner in CMS’ Restructuring & Insolvency team. He qualified in 2003 and became a partner in the business in 2007.

Glen advises debtors, creditors, insolvency practitioners, investors in distressed assets, and a variety of other stakeholders, on both contentious and non-contentious matters, at all stages of the decline and recovery curves. This includes advising on directors’ duties on insolvency, restructuring plans, security package enhancements and enforcement, distressed asset sales and acquisitions, loan-to-own strategies, insolvency investigations, solvent reconstructions, and mitigation of insolvency risk in transactions.

During his career, Glen has structured and implemented many business rescues, including UK Coal (a restructuring which saved over 2,000 skilled jobs), Mint Equities (a prominent stockbroking business, acquired by BGC Partners) and Teathers (the stockbroking arm of Landsbanki, acquired by Redmayne Bentley).

Glen has also led many major international and cross-border mandates, involving the use of the European Insolvency Regulation, the UNCITRAL model law on insolvency and other cross-border tools. He often helps overseas clients to resolve UK and cross-border conflict of law issues. Cases include Lowcosttravelgroup, Stanford International Bank, Kaupthing Singer & Friedlander, Lehman Brothers, the Niton Fund, Eurodis and Crisscross/Dynegy.

Glen covers all sectors. Currently, he is very active in heavy industry, retail, projects, financial services and pensions.

https://cms.law/en/gbr/people/glen-flannery

 

Jean-Luc Hagon
Senior Associate
CMS

 

Jean-Luc Hagon specialises in corporate and insolvency litigation.

Before joining CMS Belgium, he worked for several leading international law firms based in Brussels where he has built a solid expertise covering both domestic and cross-border disputes pertaining to, among others, shareholders’ disputes, directors’ liability, assets/claims’ recovery, bankruptcy, judicial reorganisation, tort, contracts and white-collar crimes.

Jean-Luc was teaching assistant in insolvency law at the Free University of Brussels (ULB) until 2018.

https://cms.law/en/bel/people/jean-luc-hagon