Restructuring & Insolvency

When a company is no longer able to meet its obligations, insolvency proceedings provide a collective framework for addressing its debts, preserving its assets and protecting creditors’ rights. They notably govern bankruptcy proceedings, directors’ liability, actions involving parties participating in the insolvency proceedings and the realisation of assets. In Luxembourg, where many companies form part of international groups, these matters frequently have a cross-border dimension.

Our Insolvency team advises distressed companies, institutional and trade creditors, banks, shareholders, directors, board members, as well as foreign insolvency practitioners and liquidators. It assists clients in assessing their rights and obligations before, during and after the opening of bankruptcy proceedings. We act in connection with the filing and verification of claims, the preservation of creditors’ rights, challenges relating to the statement of liabilities, asset recovery claims and liability actions against directors. We also assist foreign insolvency practitioners in carrying out their duties and coordinate the necessary steps where the relevant assets, creditors or companies are located in several jurisdictions.

Our experience advising companies and creditors, as well as acting under court appointments as bankruptcy receivers, enables our team to understand the practical conduct of bankruptcy proceedings. It promptly identifies the available assets, the rights that may be preserved and the actions that may be brought within the applicable procedural time limits, taking into account the interests of both the debtor and the creditors.

Liquidation is the final stage in a company’s lifecycle and provides for the realisation of its assets, the settlement of its liabilities and the distribution of any remaining balance among its shareholders. It may result from the closure of a business, a group reorganisation, an investment exit or court proceedings. In Luxembourg, where many companies form part of cross-border structures, the process requires the coordination of corporate, tax, financial and litigation-related considerations.

Our Liquidation team assists clients at every stage of the process, from assessing the company’s structure and obligations through to its final removal from the commercial register. We prepare corporate documentation, organise general meetings, assist with the appointment of liquidators, oversee the settlement of liabilities and advise on the realisation and distribution of assets. We also assist liquidators in carrying out their duties and coordinate discussions with creditors, administrative and tax authorities, and other relevant stakeholders. Where difficulties or disputes arise, we represent clients in proceedings relating to the liquidation or the liability of the parties involved.

Our experience in corporate law, restructuring, insolvency and litigation enables our team to anticipate obstacles that may delay the completion of the liquidation. This approach is particularly suited to situations where the company retains residual assets, has disputed liabilities or forms part of a domestic or cross-border group structure. Our team seeks to secure the realisation and distribution of assets and the treatment of disputed claims.

Corporate deadlocks can rapidly affect a company’s governance, the preservation of its assets and the continuity of its business. Where decisions can no longer be taken or a dispute threatens the company’s interests, the appointment of an interim administrator may temporarily restore an effective management framework and prevent the crisis from escalating. This measure may notably be considered in the event of a dispute between partners or shareholders, the paralysis of corporate bodies or an inability to take the decisions required for the company’s continued operation.

Our Interim Administration team advises shareholders, partners, executives, directors, managers, creditors and investors on whether such a measure is appropriate and assists them in preparing the proceedings for the appointment of an interim administrator. It also advises interim administrators in carrying out their mandate, including in managing relationships with stakeholders, preserving assets, taking urgent decisions and resolving difficulties affecting the company.

Our team combines experience in corporate litigation with in-depth knowledge of corporate governance rules and crisis management. It ensures that the measure sought or implemented remains proportionate to the difficulties encountered, complies with the scope defined by the court and enables the company to resume its normal operations while preserving its interests and business continuity.