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.