DENMARK Trends and Developments Contributed by: Henrik Sjørslev, Peter H. Knudsen, Henrik Lund-Koefoed and Levent Kitir, DLA Piper Denmark
Market Conditions, Legal Complexity and Sector Exposure In 2024, Denmark recorded 2,491 bankruptcies among active enterprises – a 19% decrease com - pared to 2023 and broadly consistent with the ten- year average. Including inactive firms, the total num - ber of bankruptcies reached 5,692. While the overall trend suggests a modest decline in corporate insol - vencies, sector-specific vulnerabilities remain. Nota - bly, the green energy sector continues to exhibit signs of financial fragility, driven by structural and market- related pressures. The aggregate bankruptcy figures remain relatively stable, but the underlying financial and legal complex - ity is increasing – particularly in industries exposed to volatile pricing, delayed infrastructure deployment and regulatory dependencies. Earlier years of rising inter - est rates, inflationary pressure and geopolitical uncer - tainty have reshaped investment conditions, making capital-intensive green projects more susceptible to financial distress and liquidity constraints.
This evolution calls for a more integrated approach to legal practice – one that combines insolvency exper - tise with regulatory insight, financial structuring and sector-specific knowledge. It also highlights the need for ongoing dialogue between legal professionals, policymakers and industry stakeholders to ensure that the legal system remains responsive to the unique challenges posed by the green transition.
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