2025 has been a landmark year for restructuring in Europe as we enter uncharted territory on several fronts. In this report, we look back at the evolving aggressiveness of European LMEs and how creditors have fought back against violence from sponsors and fellow creditors. (To see what happened in the US on these fronts, don’t miss our twin report here).

We reflect on the impacts of the rise in appeal risk in UK Restructuring Plans, and how less certainty of outcome combined with increasing violence has led to certain issuers and advisors pursuing implementation out of court or in other jurisdictions.

We dive into sectors that have been in the lime light as well as the rise in distress in private credit.

“LME trends that we've already seen take hold in Europe are here to stay,” said Duane Loft, partner at Pallas. “You can expect that the advisors will be pushing the same type of playbook that they've been pushing in the United States.”

9fin’s three part series on the Americanisation of LMEs is here.

“Europe is developing its own brand of LME, which is very distinct to the US,” said Yushan Ng, restructuring partner at Milbank. “Transactions using the European intercreditor agreement and the distress disposal mechanic allow you to create outcomes which may be at least ostensibly non-pro rata.”