European Liability Management 2025 Year in Review: European LMTs Have Landed
Alastair Gillespie, J.D. - Senior Covenant Analyst, Covenant Review
Shoshanna Harrow, J.D. - Senior Covenant Analyst, Covenant Review
18 December 2025
Insights into European Liability Management 2025 Year in Review: European LMTs Have Landed:
- Aggressive Uptiering Transactions Confirm European LMT Migration: Selecta, Hunkemöller, Victoria, and Altice International demonstrated that creditor-on-creditor violence has definitively arrived in Europe.
- Co-operation Agreements Face Novel Antitrust Litigation Challenges: Furthermore, Selecta and Optimum Communications lawsuits attacked co-op agreements on antitrust grounds, potentially reshaping creditor coordination strategies.
- Distressed Disposal Mechanics Enable Majority-Controlled Restructurings: Meanwhile, English law intercreditor agreements facilitated out-of-court restructurings through share pledge enforcement, subordinating minority holders.
- Assenagon Minority Protection Principle Resurfaces in LMT Context: Additionally, Selecta and Hunkemöller litigation invoked ancient common law requiring majority powers benefit the entire creditor class.
- Post-Restructuring Credits Feature Extensive Anti-LMT Covenant Protections: Consequently, Ardagh’s reinstated debt included comprehensive blockers, supermajority consent requirements, and dramatically reduced investment capacity.
Executive Summary
Major European liability management transactions dominated 2025, including Selecta, Hunkemöller, Victoria, and Altice International. These aggressive restructurings confirmed that creditor-on-creditor violence has definitively arrived in Europe.
Permissive covenant packages enabled sponsors to execute aggressive priming maneuvers throughout the year. Additionally, English law intercreditor agreements facilitated out-of-court restructurings that disadvantaged minority creditors.
The surge in European LMTs triggered significant cross-border litigation challenging various transaction aspects. Multiple jurisdictions saw legal challenges emerge throughout 2025.
Co-operation agreements faced novel antitrust litigation in Selecta and Optimum Communications cases. Furthermore, distressed disposal mechanics were challenged under English law minority protection principles.
European liability management transactions showcased key trends and strategic developments throughout the year. Meanwhile, the 2026 outlook suggests continued LMT activity across the region.
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