This article was first published in the IBA Insolvency and Restructuring International - November 2023
Luxembourg has modernised its insolvency system through the long-awaited adoption of rules on
business preservation. The new insolvency law completes the reform launched in October 2022 with
the administrative dissolution without liquidation procedure. This article explains that the new law is of
major importance because it introduces restructuring schemes, either out-of-court or judicial, which,
although present in the old framework, were hardly ever used. This is the first time Luxembourg has
adopted tools to detect distressed businesses, offering measures to give the business a second chance
instead of filing for bankruptcy.
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