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A sluggish economy, higher interest rates and the expiration of pandemic-era life support for ailing companies is forcing more businesses in Europe to declare bankruptcy, WSJ Pro Bankruptcy reported. A new report also showed that new business creation in Europe is slowing, as the Biden administration’s support for green tech continues to draw new investment abroad. The number of European Union businesses filing for bankruptcy in the three months to the end of June rose 8.4% from the previous quarter, reaching the highest level since 2015, according to Eurostat, the European Union’s statistics office. Registrations of new businesses fell 0.6%. Bankruptcy filings rose in all sectors of the European economy, according to Eurostat, with hotels, restaurants and transportation companies hit especially hard in the second quarter. Eastern Europe and the Baltic states have been hit by economic turmoil in the wake of Russia’s invasion of Ukraine, leading the list of bankruptcy filings in the second quarter. Hungary reported Europe’s largest increase in business bankruptcies, nearly 41%, according to Eurostat.

Israel-based fintech Vesttoo is seeking chapter 11 protection in a U.S. court which will enable it to pursue legal action against those responsible for a fake collateral scandal, it said in a statement yesterday, Reuters reported. Vesttoo — partly backed by Banco Santander's fintech venture capital arm Mouro Capital — has laid off staff, closed offices and appointed an interim chief executive following the discovery of fraudulent letters of credit used on its platform. Vesttoo provides insurers with access to so-called insurance-linked securities — an alternative form of reinsurance. These securities may be backed by collateral in the form of letters of credit. The company has conducted internal and external analysis of events leading up to the first report of a fraudulent letter of credit that was used in many transactions. Led by Mouro, Vesttoo last raised $80 million at a $1 billion valuation last October. In its bankruptcy filing, Vesttoo said that it had appointed law firm DLA Piper and financial adviser Kroll to represent the firm.

Lighthouse Immersive Inc., the company behind an interactive Vincent van Gogh exhibition displayed across the U.S., has filed for bankruptcy, Bloomberg News reported. The Toronto-based company filed for chapter 15 bankruptcy in Delaware yesterday alongside affiliates, a move that protects its U.S. assets while insolvency proceedings play out in its home country. While the company is best known for its van Gogh exhibit, it has also launched displays that feature Disney animation, as well as works of Frida Kahlo and Claude Monet. The company has sold more than 7 million tickets, according to its website. The company has obtained financing to fund itself during bankruptcy, according to court papers. Additional details on the funding weren’t included in initial filings.