Vol 23 (2026) - Issue 3

Article preview

In Ardagh, US Bankruptcy Court Provides First Chapter 15 Recognition of Proceeding Under Luxembourg’s New Restructuring Regime

Synopsis
On March 25, 2026, the United States Bankruptcy Court for the Southern District of New York (the 'Bankruptcy Court') recognised ARD Finance, S.A.'s Luxembourg judicial reorganisation proceeding (procédure de réorganisation judiciaire par accord collectif) as a foreign main proceeding under Chapter 15 of the US Bankruptcy Code (the 'Bankruptcy Code') over the objection of certain creditors arguing that the proceeding was not a 'collective proceeding' and that it was manifestly contrary to US public policy. Notably, this is the first Chapter 15 recognition of a proceeding commenced
pursuant to Luxembourg's law of 7 August 2023 on business preservation and modernisation of the bankruptcy regime (the 'Luxembourg Restructuring Law').