Clifford Chance

European Court provides insights into defences available to defeat insolvency challenges

23 April 2015

In the recent case of Lutz [2015] EU ECJ C-557/13, the European Court of Justice (ECJ) provided useful guidance on when a creditor or third party's legitimate expectations in respect of commercial transactions are protected, in the event such transactions are later challenged by an insolvency officeholder. In particular, the case considers the extent to which such parties can rely on the defence that the "detrimental" transaction could not be unwound by the law governing that transaction.

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