You are here:
17 June 2021 / news

Common struggles faced by international creditors in Luxembourg bankruptcy proceedings

A large numbers of international corporate groups conducting their activities all over the world have holding or finance companies in Luxembourg. These businesses as well as creditors face challenges when it comes to bankruptcy proceedings. Here are the key elements to carefully check in such situations.

International Insolvency & Restructuring Report 2021/22 - External column

The present article addresses selected aspects around Luxembourg bankruptcy law which international creditors may encounter and should watch for when seeking to have their debtors declared bankrupt in Luxembourg or, on the contrary, trying to assess the bankruptcy risk when negotiating a distressed investment or a debt restructuring with a group or a structure having its key entities located in Luxembourg.

More particularly, the points addressed here are the following:

  • Satisfying the "loss of creditworthiness" criteria;
  • Facing oppositions after having had a debtor declared bankrupt;
  • Relinquishing control to the trustee;
  • Assisting with securing funding to initiate proceedings on the merits; and
  • Luxembourg directors' duties in an insolvency context.

To read the full article click here 



Professional payment guarantee - Business Meeting

Newest creditor-friendly tool ‘professional payment guarantee’

Luxembourg’s newest creditor-friendly tool Professional Payment Guarantee (PPG) has been assessed. read more

EU Whistleblower Directive Insights

Get all the information about the impact and how to comply with the new whistleblower directive read more

Approving whistleblower policy and develop communication plan

By the end of 2021, many companies in Luxembourg will need to have appropriate protocols in place to facilitate whistleblowing. read more