As the European financial crisis continues, U.S. and U.K. private equity investors are increasingly focusing on distressed assets in the Euro-zone. But while opportunities abound, some investors are hesitant. Investors perceive Europe's multiple and often conflicting insolvency regimes to be largely untested and therefore unpredictable. Further, a strong disposition across the Euro-zone toward liquidating, rather than rehabilitating, troubled companies has made distressed investing in continental Europe riskier than in the United States or the United Kingdom (because liquidation typically returns less value than operating a going concern). The cumulative effect has been to chill distressed investments in the Euro-zone.