Bankruptcy

Bankruptcy is a legal process through which a company that cannot meet its debt obligations is declared insolvent and its assets are liquidated or restructured to repay creditors.

In Luxembourg, bankruptcy proceedings are regulated by local insolvency laws designed to protect creditors and allow for potential restructuring. These procedures ensure that the process is orderly, giving companies a chance to address financial difficulties while maintaining legal and regulatory order. Bankruptcy serves as a last resort and has significant implications for business continuity and stakeholder confidence.