On 19 July 2023, the Luxembourg parliament passed bill no. 6539A on business preservation and modernisation of bankruptcy law, which aims to modernise Luxembourg’s insolvency laws, implementing EU Directive 2019/1023 of the European Parliament and the Council of 20 June 2019 on preventive restructuring frameworks (the 'Business Preservation and Insolvency Modernisation Act' or 'BPIM Act').

The Act of 30 June 2021 has extended the possibility for Luxembourg-based companies to hold virtual board and shareholder meetings until 31 December 2021.

Table of contents

Bankruptcy .............................................................................. 2

Controlled management .......................................................... 2

Moratorium or suspension of payments .................................. 3

Company voluntary arrangement ............................................ 3

Involuntary liquidation.............................................................. 3

Contacts .................................................................................. 4

Given the present coronavirus outbreak, it is of the utmost importance for lenders and borrowers alike to diagnose correctly the risks and challenges ahead for their business. Indeed, the present crisis is not merely about liquidity but much more about solvency as it will affect the real economy first.

With the spread of the virus, there is an acute risk of financial difficulties leading to default and bankruptcies in sectors most vulnerable to the virus, including maritime and air transport, retail, tourism, insurance and entertainment.