Path To Recovery: The Judicial Reorganization

In a global economic context marked by uncertainty, the Law of 7 August 2023 on the preservation of businesses and modernization of bankruptcy law in Luxembourg comes at just the right time.

Many businesses, particularly SMEs, are facing increasing financial difficulties as a result of inflation and geopolitical crises. This law aims to provide an appropriate legal framework to support these companies in difficulty, by encouraging their reorganization rather than their bankruptcy. Among the key measures, the judicial reorganization procedure stands out for its varied options for effective recovery.

Eligibility Requirements

The judicial reorganization procedure is aimed at any company in difficulty that is experiencing financial problems that could jeopardize its future, either in the short term or in the long term. It should be noted that the bankruptcy of the company is not an obstacle to the opening of the procedure.