Lawyer Monthly Legal Awards 2023 the years. Understanding the specifics of these rules is crucial to navigate the potential challenges associated with debt recovery and preference actions in the Benelux region. Differences in court systems and legal traditions can also impact the efficiency and predictability of insolvency proceedings. This is precisely where our dedicated Benelux FR&I Team can have real added value for our clients as they know their respective markets like the back of their hand and are used to working together in a streamlined fashion across our three core jurisdictions. How do you approach cross-border insolvency cases? Are there specific principles or strategies that you consistently apply? Handling cross-border insolvency cases requires a careful and strategic approach due to the complexity of navigating through different legal systems, private international law considerations, and conflicts of law issues, not to mention different languages and court procedures across jurisdictions. In my experience, it is crucial to conduct an early assessment of the situation to understand the scope of cross-border issues. Identify the jurisdictions involved, the applicable laws, and potential conflicts in order to develop a comprehensive strategy to address these issues. Then it is critical to identify and protect assets across borders to prevent dissipation or loss when we act on the creditor side, which is typically the case. This may involve obtaining court orders, freezing assets, or collaborating with local authorities to secure the debtor’s estate. How do you view the role of technology in insolvency law? Do you think tools like AI and data analytics are changing the landscape? The role of technology, including tools like AI and data analytics, in insolvency law is evolving and has indeed the potential to significantly impact the landscape. Technology can allow for more efficient and comprehensive data management, helping in due diligence processes during insolvency proceedings, and analyze large volumes of financial and operational data to identify patterns, trends, and potential areas of concern. On the debtor side, some AI tools can provide predictive analytics, helping stakeholders anticipate financial distress or bankruptcy risks, allowing for proactive measures to be taken to mitigate the impact. How do you see the future of insolvency law evolving, especially in the context of global financial challenges? Insolvencies are an important issue for the European economy. Companies are incorporated in international groups, apply various corporate governance rules and have access to capital in the global financial markets. Funds play an increasing role in many European jurisdictions (let alone in Luxembourg) by investing in debt or equity in many of these companies, which must adapt continuously to a changing business environment: globalisation, relocation of businesses, financial crisis, wars and unexpected market disruptions, new regulations, which in turn increase the risk of financial difficulties. These difficulties in a globalized economy are much harder to overcome and cure because cases are more intricate and complex to handle. I truly believe insolvency and restructuring will play a pivotal role in the coming years. It is a general trend that we see and that is also in line with the expectations of the OECD. You will notice that insolvency laws have recently been modernised in most EU Member States and also in the UK, Japan and Singapore. Luxembourg was one of the last Member States to do so but it now has a new toolbox which we hope to be an attractive alternative for funds and companies undertaking large restructurings. Compared to other jurisdictions, are there specific challenges or nuances in dealing with insolvency cases in the Benelux region? Because of the close geographical proximity and economic integration of the Benelux countries, cross-border insolvency cases are not uncommon. Of course, the EU Insolvency Regulation has helped a lot in providing a framework and adequate tools for dealing with cross-border insolvencies within those countries, but challenges may still arise in practice. Cultural and business practices vary among the Benelux countries, influencing how insolvency cases are approached and resolved. Understanding these nuances is crucial for practitioners and stakeholders involved in insolvency proceedings. Not to mention that each country has its own rules and practices regarding debt recovery and creditor rights or the avoidance of preferred transactions, although they tend to have been harmonized over “Effective insolvency laws should aim to protect the legitimate interests of creditors while fostering an environment that encourages the rescue of viable businesses.” LUXEMBOURG 35
RkJQdWJsaXNoZXIy Mjk3Mzkz