Vol 18 (2021) - Issue 1

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Reorganisation Proceedings in Luxembourg: Winds of Change Have Begun to Blow

Synopsis
This article provides an overview of the current general legal framework in Luxembourg for reorganisation proceedings as well as of the upcoming reform of such proceedings which is due to be formally adopted in the coming months. We also perform a critical analysis of the proposed legislation and compare it to the requirements of the EU Restructuring Directive given the relative similarity of purpose of such instruments and the obligation made to Member States to implement most of the directive under their domestic law by 17 July 2021. In that respect, our analysis indicates that there are still non-negligible gaps between the draft Luxembourg legislation on reorganisation proceedings and the EU Restructuring Directive and we give our views as to how we think some of these inconsistencies could be tackled in practice by the Luxembourg legislator.