Despite not expressly providing for a formal out-of-court restructuring framework, Luxembourg remains a popular jurisdiction for international debt restructurings. This article looks at Luxembourg's unique characteristics and its particular advantages in an international restructuring context, covering:

The Luxembourg vehicle as a restructuring tool.

Luxembourg's safe and robust security package.

The advantages of a conservative insolvency test.

Director liability.

Luxembourg court-driven recovery procedures.

English recovery proceedings and the establishment of a sufficient connection.

This article is part of the global guide to restructuring and insolvency law. For a full list of jurisdictional Q&As visit www.practicallaw.com/restructure-guide.

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