Luxembourg: Insolvency/Bankruptcy

The Luxembourg government has filed a bill of law proposing targeted amendments to the country's securitisation framework, building on 2022 reforms to address evolving market practices. The proposed changes focus on expanding financing methods, strengthening insolvency protections, enabling compartment-to-compartment investments, broadening security package flexibility, refining active management rules, and clarifying statutory subordination provisions for securitisation vehicles.

The Luxembourg Law of 5 August 2005 on financial collateral arrangements, as amended (the "Collateral Law"), is recognised by the industry to be creditor-friendly as it provides safe harbour provisions protecting...

No stay of proceedings if party was declared insolvent after the oral hearing had concluded and the legal dispute was ready for a decision, R. 311.1 RoP, Art. 41 (3) UPCA