Navigating Conflicts of Interest in European Restructurings

Drawing a comparison with recent US Chapter 11 cases, this Spotlight article explores potential lawyer conflicts of interest in European restructurings of private equity backed companies. Whilst, in contrast to the US, UK insolvency law does not seek to directly arbitrate these conflicts, solicitors practising in England and Wales should in any event be cognisant of their professional duties to act with independence and in the best interests of each client. In view of these duties, a solicitor or firm with a close connection to the sponsor should carefully consider whether it is able to act for the debtor company.