Restructuring across borders: Toolkit for Luxembourg

Luxembourg's restructuring landscape changed materially in November 2023 with the introduction of new in-court and out-of-court reorganization proceedings. For the many international companies, fund structures, and holding entities that operate through Luxembourg, and for the creditors that hold Luxembourg law-governed security, understanding exactly how these new procedures work, who they apply to, and what they mean for creditor rights is now a practical necessity. 

Christopher Poel, senior knowledge lawyer at A&O Shearman, is joined by Bénédicte Kurth and Lena Walin for a detailed examination of the new Luxembourg framework. The discussion covers the scope of the new proceedings and who falls within their reach, how the in-court and out-of-court routes differ in terms of process and outcome, and the specific implications for creditors to Luxembourg-incorporated entities or holding Luxembourg law-governed security. What conditions must be satisfied for a debtor to access each procedure? How do the new tools compare with the pre-existing Luxembourg insolvency framework? And what should creditors be doing now to understand their position in any restructuring involving a Luxembourg entity? 

International restructuring practitioners, distressed debt investors, and advisers to fund structures and holding companies with Luxembourg exposure will leave this episode with a clear and current understanding of how Luxembourg's new reorganization tools operate and the creditor-side implications they carry. 

Restructuring Across Borders maps the restructuring and insolvency landscape across more than 50 jurisdictions worldwide, drawing on the expertise of A&O Shearman's global restructuring group and its partner law firms. Each episode examines the pre-insolvency tools, court-supervised procedures, and emerging developments in a specific jurisdiction, with a focus on the practical implications for debtors, creditors, and cross-border advisers. The series accompanies A&O Shearman's Restructuring Across Borders Toolkit, a free reference resource available at aoshearman.com.