On 1st November 2023, the new Luxembourg law of 7 August 2023 on the continuation of businesses and modernisation of insolvency law (the "Law") enters into force.

This long-awaited reform implements Directive 2019/1023 to introduce a modern restructuring regime, with out-of-court and court supervised mechanisms to protect companies in distress. The Law is expected to provide more flexible and effective measures for businesses under financial stress and their creditors, making Luxembourg an attractive jurisdiction for restructurings.

The banking reform package marks an important step toward the completion of the European post-crisis regulatory reforms

On 1st November 2023, the new Luxembourg law of 7 August 2023 on the continuation of businesses and modernisation of insolvency law (the "Law") enters into force.

This long-awaited reform implements Directive 2019/1023 to introduce a modern restructuring regime, with out-of-court and court supervised mechanisms to protect companies in distress. The Law is expected to provide more flexible and effective measures for businesses under financial stress and their creditors, making Luxembourg an attractive jurisdiction for restructurings.