It goes without saying that the
past few years have been quite
unique. The ongoing
uncertainty across the financial
markets has unavoidably led to a
spectacular level of bankruptcy,
insolvency and restructuring
cases across most jurisdictions.
Luxembourg has also been
affected particularly by the collapse
of major financial conglomerates
with subsidiaries in Luxembourg
such as Kaupthing, Glitnir,
Landsbanki and Lehman Brothers,
which collectively have led to
many complex cases for the legal
and financial communities.
In today’s global business
environment, most insolvency or
restructuring situations now affect
more than one location and
various options exist for groups
facing such challenges. In
Luxembourg, the use of the
jurisdiction’s investment vehicles
for restructuring and turnaround
purposes has proven both popular
and effective for international
groups of commercial companies.
The following article outlines the
options available for international
holding structures, and analyses
the commonly used two-tier
structure where a Luxembourg
company (Luxco) is the holding
structure of a group facing
financial difficulties.
Location