The new landscape for Luxembourg insolvency procedures

Article by Anna Hermelinski-Ayache and Igesa Andrea. 

The Law on the Preservation of Enterprises and Modernising Bankruptcy Law dated 7 August 2023 came into force on 1 November 2023. The Law reshaped the Luxembourg insolvency regime by introducing a true alternative to bankruptcy into Luxembourg law, with new procedures for out-of-court arrangements and judicial reorganisations for companies facing financial difficulties.

The article discusses alarm mechanisms and early detection, out-of-court arrangements: flexibility and discretion, and judicial reorganisation: a comprehensive approach and Bankruptcy as a last resort.

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This article first appeared in the May 2024 issue of Insolvency and Restructuring International (Vol 18, No 1), and is reproduced by kind permission of the International Bar Association, London, UK. © International Bar Association.