The number of companies declared bankrupt in Luxembourg has increased tremendously since 2009, reaching a record of 1,026 in 2012. According to the authorities, this situation is mainly due to the existing legislation, which is obsolete and no longer suited to modern financial challenges.
In 2009 the government concluded that the creation of appropriate tools for companies in financial distress was vital, especially in the post-crisis period, and decided to address this issue.
Bill 6539 on business continuity and modernisation of the bankruptcy legislation was issued on February 26 2013 by Justice Minister Francois Biltgen.
In the following article, Greet Wilkenhuysen and Romain Sabatier overview the changes introduced in the existing legislation as well as the purpose of the new bill.
Source - The International Law Office (ILO).