Insolvency 2025

LUXEMBOURG Trends and Developments Contributed by: Ana Nicoleta Andreiana, Madeleine Dos Santos Marques, Patrick Ries and Sofia Polykandrioti, Loyens & Loeff

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Introduction Luxembourg has long been a jurisdiction of choice for international financing and investment structures. Largely due to the absence of adequate local tools, Luxembourg companies have long relied on foreign restructuring regimes to implement complex group financial restructurings. The introduction of the Lux - embourg Law of 7 August 2023 on the preservation of businesses and the modernisation of bankruptcy law marks a turning point, equipping Luxembourg with preventive restructuring mechanisms aligned with EU standards. While this development is expected to reduce reliance on foreign courts, the inherently international nature of groups present in Luxembourg – with debt governed by multiple governing laws and entities incorporated across jurisdictions – suggests that cross-border considerations will continue to shape Luxembourg’s restructuring landscape. Two recent decisions – the Luxembourg District Court decision 2025TALCH02/00603 and the Frankfurt Regional Court ( Landgericht Frankfurt ) judgment of 22 August 2025 – provide interesting insights into the impact and treatment of foreign processes, and into the broader European debate on the coordination of restructurings. Beyond these decisions, this article also examines the very recent inclusion of Luxembourg processes of judicial reorganisation ( réorganisation judiciaire ) in Annex A of the EU Insolvency Regulation 2015/848 and how it ensures their automatic recognition across all EU member states. It also considers how the Law of 7 August 2023 intro - duces practical innovations, notably the ability to

appoint a provisional administrator ( administrateur provisoire ) or a court-appointed agent ( mandataire de justice ) inside or outside a judicial reorganisation at the request of creditors or other interested parties – tools that, if used strategically, may reshape stake - holders’ leverage in specific contexts. Together, these developments reinforce Luxembourg’s position as a strategic restructuring jurisdiction, com - bining pragmatic cross-border recognition and offer - ing new domestic tools capable of providing critical support in financial distress situations. The Luxembourg Decision (2025TALCH02/00603): The Need for and Scope of Exequatur The Luxembourg District Court decision in case 2025TALCH02/00603 addressed a key question in cross-border restructurings: the enforceability in Lux - embourg of a foreign restructuring judgment and the conditions under which an exequatur (ie, a judgment granting formal recognition) is required. The case involved a Luxembourg company whose centre of main interests (COMI) had shifted to the UK and, soon thereafter, a restructuring plan under Part 26A of the UK Companies Act 2006 was sanctioned. The plan included, amongst other measures, the extinguishment of subordinated debt, modifications to existing guarantees, and a capital reorganisation through share transfers resulting in shareholder dilu - tion. While the instruments and guarantees were pri - marily governed by German law, certain pledges over shares and receivables were subject to Luxembourg law.

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