LUXEMBOURG Law and Practice Contributed by: Stefanie Ferring, Oliver Zwick and Geoffrey Scardoni, Clifford Chance
mum of six months) are void or voidable if certain conditions are met (transactions at undervalue, knowledge of the cessation of payments, etc). There is no time limitation for transactions which were done in fraud of other creditors rights. 7.7 Set-Off Rights Set-off can be applied during insolvency. 7.8 Out-of-Court v In-Court Enforcement Private credit restructurings usually include a share pledge and receivables pledge enforce - ment, which can be implemented without co- operation from the existing equity holders. In case there is co-operation from those parties, the restructuring can be implemented on a con - sensual basis. Frequently, the preparation of a share pledge enforcement is an effective tool to come to a consensual transaction with the exist - ing equity holders. 7.9 Dissenting Lenders and Non- Consensual Restructurings A debtor can initiate a judicial reorganisation process to implement a restructuring, which includes a cram-down procedure that can involve write-off of debt, extension of matu - rity dates, debt-for-equity swaps and similar arrangements. The reorganisation plan is con - sidered approved by the creditors when, in each class, the ballot receives the favourable vote of the majority of the creditors, representing by their uncontested or provisionally admitted claims, half of all amounts due in principle. If the plan has not been approved by the affected par -
ties in accordance with the majorities requested in each class authorised to vote, it may never - theless be homologated upon proposal by the debtor, or with the agreement of the debtor, and be imposed on the dissident classes authorised to vote under certain conditions. Secured credi - tors’ consent is needed for any measure other than a stay during a limited period of time. The homologation of the reorganisation plan makes A pre-pack insolvency – ie, a pre-arranged sale of a business which is implemented upon the opening of insolvency proceedings, is currently not available in Luxembourg. Balance sheet restructurings are not implemented through insolvency, but by a share pledge and receiva - bles pledge enforcement process. it binding on all stayed creditors. 7.10 Expedited Restructurings 8. Case Studies and Practical Insights 8.1 Notable Case Studies There are not many notable cases which are publicly known and merit reference in this con - text. 8.2 Lessons Learned
See 8.1 Notable Case Studies . 8.3 Application of Insights See 8.1 Notable Case Studies .
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