Restructuring advisory mandate activity in Europe bounced back in the final quarter of 2024 after a summer slowdown, with 108 new roles awarded to restructuring professionals, representing a 50% quarter-on-quarter (QoQ) increase over the 72 engagements in 3Q24. The 4Q24 mandates involved EUR 35.7bn of debt from 32 restructuring situations, up slightly from EUR 33.4bn in the prior quarter.

In total, 393 new mandates were awarded during 2024. These arose out of 84 restructuring situations and involved EUR 153.9bn of debt.  (If you would like to submit mandates, please email [email protected])

In-court

Less than half (42.6%) of the new mandates in 4Q24 were related to in-court restructurings. However, these 46 in-court mandates, arising from only 13 situations, covered more than 70% (EUR 25.2bn) of the total mandated debt in the period, largely because of UK-based Thames Water, which alone accounted for EUR 18.9bn of mandated debt in the quarter, or 52.9% of the total mandated debt in 4Q24. The UK water utility, which first hired advisors in March 2024, is currently awaiting judgment on the outcome of its restructuring plan, Debtwire reported on 7 February.

Other than Thames Water, three other in-court situations involved more than EUR 1bn debt in 4Q24, including two bike manufacturers – Austrian KTM AG and Dutch Accell Group – and UK-based biomass power plant company Chaptre Finance plc.

For full year 2024, a total of 172 (43.8%) new roles were awarded for 33 in-court restructuring situations, involving EUR 72.4bn debt. Thames Water was also the largest in-court situation by mandated debt of the year. The mammoth restructuring involved EUR 29.3bn of mandated debt and 20 credited advisors.

After Thames Water, Sweden’s Northvolt AB and Germany-based BayWa AG were the next largest in-court situations of 2024 in terms of mandated debt amount.

The Swedish electric vehicle battery maker hired a restructuring advisor for EUR 6.63bn debt in September 2024 and then filed its sub Northvolt Ett Expansion AB into a domestic bankruptcy process in October 2024.

BayWa, which hired restructuring advisors for the first time in July 2024 for its EUR 6.5bn debt, filed with a German court to commence a StaRUG process in late January 2025.

Out-of-court

There were 62 mandates awarded for out-of-court restructurings during 4Q24, representing 57.4% of the total. These mandates arose out of 19 situations and covered EUR 10.5bn of the mandated debt (29.5%) in the period. The largest out-of-court situation for the quarter was Norwegian cruise liner Hurtigruten Group AS. Hurtigruten announced the completion of the sale of the company on 12 February, which marked the closing of the company’s recapitalisation transaction. The transaction involved maturity extension for EUR 1.6bn debt, a break-up of the company, and the takeover of the newly-formed entities by two different investor consortia.

For full-year 2024, 51 out-of-court situations generated 221 new mandates, involving EUR 81.5bn debt. The largest out-of-court situation of 2024 is Altice France Holding SA. The embattled French telco first hired advisors in June 2024. The complicated multi-jurisdiction case, involving mandated debt of EUR 32bn, has evolved into a tense standoff with creditors who have united under various cooperation agreements. The company recently sweetened its offer to give a 30% equity stake to lenders, Debtwire reported on 24 January.

(Click here for Debtwire’s latest EU and Northam Co-op Tracker)

United Kingdom

In 4Q24, the United Kingdom generated 32 new engagements from nine situations. These 32 new mandates were related to EUR 23.2bn debt. As a result of Thames Water, UK ranked first in terms of mandated debt in 4Q24 as well as in 2024 as a whole.

For full-year 2024, UK was the biggest contributor in terms of the number of mandates, generating 113 new mandates, involving EUR 52.5bn debt.

Germany

Germany also generated 32 new mandates in 4Q24, involving significantly less debt (EUR 2.2bn) compared to the UK. Of the eight German restructuring situations, Webasto SE was the only one that involved more than EUR 1bn debt.

The manufacturer of sunroofs for the automotive industry hired advisors on 21 November, Debtwire reported. The company is seeking advice on a potential restructuring of over EUR 1bn in debt, as well as M&A possibilities, amid a slowdown in the automotive sector.

For full-year 2024, 21 German situations generated 108 new mandates, involving EUR 17.7bn debt.

Top advisor 

Kirkland & Ellis topped the legal advisor rankings for restructuring situations in 2024. The firm secured 25 mandates and advised on EUR 38bn of debt, also the most debt of any law firm. During the year, its largest situation by mandated debt was from its role as the legal advisor for Ardagh Group SA, a Luxembourg-headquartered glass packaging company with over EUR 9.7bn debt. K&E also advised on other major situations, including representing creditors of Thames Water, and shareholders of BayWa r.e and AccorInvest Group SA.

Milbank ranked second for 2024, with 15 mandates on EUR 7.6bn of debt. Major situations include advising bondholders to Altice Holdings and the Ardagh Group. Linklaters came third with 13 mandates.

The law firms that secured the most mandates in 4Q24 was Kirkland & Ellis, which secured five mandates. Milbank, A&O Shearman, and Freshfields Bruckhaus Deringer secured four mandates each.

In terms of the number of mandates amongst financial advisors during 2024, Houlihan Lokey topped the league table with 20 mandates covering EUR 21.2bn of debt. The firm’s largest situation by mandated debt is acting as the financial advisor to the Ardagh Group.

PJT Partners secured second place with 18 mandates in 2024, advising on EUR 14.5bn of debt. Notably, the firm was mandated as advisor to UK debt collector Lowell Group. Teneo/Herter & Co came third with 16 mandates.

The financial advisory firms that secured the most mandates in 4Q24 were Teneo/Herter & Co and Houlihan Lokey, which were tied with six mandates each.