Enforcement of Luxembourg pledge: key takeaways from recent court decision
A recent Luxembourg District Court judgment(1) has confirmed the great flexibility offered by the Luxembourg act (August 5 2005) on financial collateral arrangements, as amended (the Collateral Act), to creditors to enforce their Luxembourg law governed pledges. In particular, the court ruled that a Luxembourg pledge can be enforced by a creditor on the occurrence of a contractually agreed enforcement event, without requiring repayment or the need to accelerate the underlying debt obligations.
Source: ILO - April 2018