In this episode, we explore four landmark European corporate insolvency cases—Air Berlin, Cimolai S.p.A., Collins & Aikman, and Thomas Cook Group—highlighting key legal strategies, coordination challenges, and stakeholder impacts.

• Air Berlin (2017): Germany-based airline collapsed after Etihad withdrew financial support. Main insolvency proceedings were opened in Germany under the EU Insolvency Regulation, with COMI disputes arising over Austrian subsidiary NIKI. The case involved liquidation and asset sales, with no recovery for unsecured creditors.

• Cimolai S.p.A. (2023): Italian construction firm faced insolvency due to risky derivatives. Combined Italian and UK restructuring processes overcame the post-Brexit Gibbs rule to bind English-law creditors. The dual-track plan preserved jobs and avoided liquidation.

• Collins & Aikman (2005): A US-linked insolvency led to the UK administering 24 EU subsidiaries across 10 countries. This pioneering centralized approach used “synthetic secondary proceedings,” influencing later EU law and preserving 5,000 jobs through a going-concern sale.

• Thomas Cook Group (2019): The travel giant’s collapse led to fragmented national insolvency proceedings. While the UK entity was liquidated, subsidiaries like Condor were saved. The case sparked calls for EU-level reforms in travel sector insolvencies.

Each case illustrates evolving strategies in cross-border insolvency, the role of COMI, the impact on creditors and employees, and the growing need for international cooperation.

Corporate Insolvency Law: Key Concepts and Procedures

• Objective: Provides a structured approach for handling insolvent companies through rescue or liquidation.

• Distinct from personal insolvency, which focuses on giving individuals a fresh start.

• Goal: Balance the rights and interests of creditors, shareholders, and employees.

• Common Law Systems (e.g., UK): Use procedures like administration, receivership, and Company Voluntary Arrangements (CVAs).

• Civil Law Systems (e.g., Czech Republic): Use statutory procedures like reorganizace (reorganization) and konkurz (liquidation).

• Shared Aim: Maximizing creditor recovery while preserving viable businesses where possible.

• Initiated by a secured creditor.

• Receiver manages and sells specific assets to repay that creditor.

• Not focused on saving the business.

"Receivership is focused, creditor-driven, and does not prioritize company rescue."

• Provides a statutory moratorium from creditor actions.

• Administrator may run the business, sell it, or propose restructuring.

• Exit routes: return to directors, liquidation, CVA, or pre-pack sale.

"Administration offers temporary legal protection while exploring rescue or better-value asset sales."

• Debt restructuring agreement proposed by the company and insolvency practitioner.

• Approved if 75% of creditors (by value) vote in favor.

• Supervised by an appointed insolvency professional.

• Court-supervised plan involving creditor class voting and judicial confirmation.

• Allows continued business operation while restructuring debt.

• Licensed professionals who manage different aspects of insolvency:

  • Receiver: For secured creditors.

  • Administrator: Business stabilization and rescue.

  • Liquidator: Wind-up and asset distribution.

• Types of creditors:

  • Secured: Rights over specific assets.

  • Unsecured: No asset security.

  • Preferential: Statutory priority (e.g., employees).

• Creditor powers:

  • Vote on CVAs/reorganization plans.

  • Form creditors’ committees (e.g., věřitelský výbor in Czech law).

  • Review reports and challenge practitioner decisions.

"Creditors have legal tools to monitor, influence, and, if needed, oppose insolvency outcomes."

• Ensures coordination between main and secondary insolvency proceedings.

• Case Study: EuroBuild AG – German main proceedings with Polish secondary proceedings to ensure fairness and consistency.

• Possible outcomes:

  • Rescue (e.g., ModeTex S.A. – returned to profitability).

  • Job retention (e.g., XYZ Electronics – saved 60% of jobs).

  • Higher creditor returns (compared to liquidation).

  • Liquidation, if rescue is not viable.

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I. Purpose and Scope of Corporate Insolvency LawII. Cross-System VariationsIII. Core Insolvency Procedures1. Receivership (Creditor-Driven)2. Administration (UK – Rescue-Oriented)3. Company Voluntary Arrangement (CVA) (UK)4. Reorganizace (Czech Republic)IV. Insolvency PractitionersV. Creditor Rights and ParticipationVI. Cross-Border Insolvency (EU Regulation 2015/848)VII. Outcomes and Real-World Application

Court Motions: Definition, Purpose, and Strategic Importance

I. Introduction to Motions

• Definition: A motion is a formal request made to a court for a specific ruling or order.

• Purpose: Motions serve as vital legal tools used throughout litigation to obtain rulings, clarify legal issues, shape case strategy, and manage proceedings.

II. Importance of Motions in Litigation

• Motions influence the direction and outcome of a case.

• Strategic use of motions can:

  • Strengthen a party's legal position

  • Limit or exclude harmful evidence

  • Expedite case resolution

III. Core Purposes of Court Motions

1. Seeking Relief: Requesting court intervention for specific actions (e.g., dismissal, enforcement).

2. Clarifying Issues: Narrowing the scope of dispute or focusing legal arguments.

3. Advancing Arguments: Presenting legal reasoning and evidentiary support.

4. Controlling the Litigation Process: Regulating pace and procedures for fairness and efficiency.

IV. Common Types of Motions

• Motion to Dismiss:

  • Purpose: End a case due to legal deficiencies (e.g., lack of jurisdiction).

  • Example: Plaintiff failed to properly serve the complaint.

• Motion for Summary Judgment:

  • Purpose: Request judgment when no factual disputes exist.

  • Example: A contract is unambiguous and supports the moving party.

• Motion to Compel Discovery:

  • Purpose: Force the opposing party to comply with discovery requests.

  • Example: Defendant fails to answer interrogatories.

• Motion in Limine:

  • Purpose: Exclude certain evidence before trial.

  • Example: Block introduction of prejudicial past conduct.

• Motion for a New Trial:

  • Purpose: Request retrial due to procedural error or new evidence.

  • Example: Jury verdict against the weight of evidence.

• Motion for a Protective Order:

  • Purpose: Prevent overly burdensome or intrusive discovery.

  • Example: Company seeks to protect trade secrets.

V. Elements of a Properly Drafted Motion

1. Caption: Identifies court, parties, and case number.

   • Example: "Superior Court of California, County of Los Angeles; John Smith, Plaintiff, v. Acme Corporation, Defendant; Case No. 2023-CA-0001"

2. Introduction: Briefly states the motion's objective.

   • Example: "Defendant Acme Corporation hereby moves this Court for an order dismissing Plaintiff's complaint for..."

3. Supporting Argument: Presents legal basis, facts, and relevant case law.

4. Prayer for Relief: Specifies the exact order requested.

5. Signature and Filing: Must comply with court rules and procedures.

VI. ConclusionMotions are essential procedural tools that shape litigation strategy and outcomes. Understanding their purposes, types, and drafting elements is critical for legal professionals. Mastery of motions enhances advocacy, ensures procedural compliance, and improves the chances of favorable results in court.