Insolvency

Insolvency occurs when a company cannot pay its debts as they come due.

In Luxembourg, insolvency proceedings are governed by local and EU insolvency laws, offering structured frameworks for either reorganising or liquidating a business. The insolvency process aims to protect creditor rights while offering a potential pathway for restructuring a distressed company. Effective insolvency management is critical to preserving business value and ensuring that affected stakeholders are treated fairly.