On 14 December 2021, the Luxembourg court of appeal rendered a decision setting out the potential grounds for overturning a judicial liquidation of a company based on the right to an effective legal action (“droit au recours effectif”),
Draft legislation n°6539B, issued from the split of bill n°6539 relating to business preservation and the modernization of bankruptcy law, contemplates the introduction of a new procedure of compulsory dissolution applicable to certain Luxembourg companies that are non-compliant with Luxembourg law.
This memorandum gives a short summary on the bankruptcy petition and general insolvency filing obligations of the management body of Luxembourg companies, i.e. actions the managers or directors must perform,
The law of 5 August 2005 on financial collateral agreements, as amended (the 2005 law), provides an attractive legal framework for creditors as its insolvency ring-fencing provisions protect security rights
Luxembourg went into full Coronavirus lockdown on March 16. By the ministerial decree of 16 March 2020, the State narrowed down the movement of citizens to the essential activities (notably the procurement of food, medication and basic necessities and travel to health facilities)
This is the second of a series of two briefing notes published by the Restructuring & Insolvency practice of Arendt on recent or ongoing legislative changes in matters of insolvency law at Luxembourg and EU levels. You can read our first briefing note here
Part 1 – Update on the upcoming reform of Luxembourg insolvency law
On 20 May 2015, the European Commission published regulation (EU) 2015/848 on insolvency proceedings (recast) ("Regulation 2015/848") . This regulation repeals regulation (CE) 1346/2000 on insolvency proceedings, as amended, which originally came into force on 31 May 2002 ("Regulation 1346/2000").
The decision of the Court of Appeal (Cour d’Appel) is made upon referral back to the lower court following an order to re-try by the Supreme Court (Cour de Cassation) of February 7th2013, which has already been discussed in the BSP Newsletter of September 2013.
According to the Court of Appeal, instead of entirely putting an end to bankruptcy operations, the decision to close the bankruptcy case only "suspends the bankruptcy process", while restoring individual rights to creditors. The appeal judges further indicated that "the bankruptcy regime stops existing, but the debtor remains under the threat of the re-opening of bankruptcy operations, which virtually survive".
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