Luxembourg Restructuring And Insolvency: A Guide To Security

In this article, partner Bertrand Géradin and managing associate David Al Mari from Ogier's Restructuring and Insolvency team in Luxembourg provide a high level summary of the enforcement mechanisms related to share pledges in Luxembourg. This article first appeared in Chambers Expert Focus Guides.

Luxembourg is a prominent global hub for acquiring international investment portfolios. Typically, the financing for these acquisitions is secured by leveraging the assets and cash flows of both the target firm and the acquisition vehicle. In Luxembourg, where holding companies usually lack operational activities, the key assets available for collateral are shares, receivables, and bank deposits.