The new Insolvency 2024 guide features close to 40 jurisdictions. The guide provides the latest legal information on the broad legal framework for insolvencies, the role of creditors, out-of-court and statutory restructuring processes, statutory insolvency and liquidation procedures, cross-border insolvency issues, the duties and liabilities of directors and officers, claims to set aside or annul a transaction.

Law and Practice

 1. Overview of Legal and Regulatory System for Insolvency/Restructuring/Liquidation

 1.1 Legal Framework

The general insolvency regime is regulated by the following:

• Commercial Code: Section III, Articles 437 to 614, dealing with stay of payments and bankruptcy proceedings;
• New Insolvency Law: formally known as the Law of 7 August 2023 on the business preservation and modernisation of bankruptcy law (the “Law of 7 August 2023”); and
• Regulation (EU) 2015/848: Regulation of the European Parliament and of the Council of 20 May 2015 on insolvency proceedings (recast) (the “EU Insolvency Regulation (Recast)”), which replaces the previous Regulation (EU) 1346/2000 for insolvency procedures opened after 26 June 2017.

Specific Insolvency Regimes or Provisions

• In addition to the general framework, specific insolvency regimes or provisions exist for the following sectors.
• Credit Institutions and Financial Professionals: Law of 18 December 2015 covers resolution, recovery and liquidation measures for credit institutions and certain investment firms, as well as deposit guarantee schemes and investor indemnification (as amended).
• Insurance and Reinsurance Undertakings: Law of 7 December 2015 governs the insurance sector (as amended).
• Regulated Investment Funds and Fund Managers:
  • Law of 15 June 2004 relates to investment companies in risk capital (SICAR) (as amended);
  • Law of 13 February 2007 on specialised investment funds (as amended);
  • Law of 17 December 2010 pertains to undertakings for collective investment (UCIs) (as amended); and
  • Law of 23 July 2016 on reserved alternative investment funds (RAIFs) (as amended).
• Regulated Securitisation Vehicles and Affiliates: Law of 22 March 2004 governs securitisation (as amended).   

Read more in the Law and Practice Luxembourg chapter of the Chambers insolvency 2024 Guide.