According to The Irish Times (28 January 2009):

ICC said net worth was an important indication of the value of a company as it is composed primarily of all the money that has been invested in the business since its inception as well as retained earnings for the duration of its operation.

‘Negative net worth is important as it can be used to determine the creditworthiness of companies because it gives a snapshot of a company’s investment history,’ said ICC Information head of business and development Michael Gannon.

‘As we enter more challenging times it is important to understand exactly who you should be extending credit to and therefore decreasing your probability of incurring bad debt.

‘Despite this, it is necessary for companies to differentiate between having a negative net worth and the ability to meet obligations as they fall.’

Fortunately, European financial reporting requirements are stricter than the US.  Many countries have regional or national registrars where firms meeting minimum size requirements must annually file their financials, directorships, and shareholdings.  This transparency helps potential partners, clients, and vendors asses the creditworthiness of European firms.  In the case of ICC Information, they reviewed financials filed with the Irish Companies Registration Office (CRO).

European financial data is often available through national registrars, credit research companies, and business information services such as OneSource.

Irish Balance Sheet with Negative Net Worth