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MOLITOR's Insolvency and restructuring desk practice

MOLITOR has a longstanding expertise in insolvency and restructuring which dates back from Lehmann Brothers and Madoff cases. Our team assists companies, financial institutions, investment funds and their directors as well as bankruptcy trustees or judicial liquidators in cross-border and domestic out-of-court and court restructurings, insolvencies and judicial liquidations of companies, financial institutions and investment funds.

One of our partners is regularly appointed as judicial liquidator and bankruptcy trustee by Luxembourg courts.

MOLITOR adopts a multi-disciplinary approach which can involve the corporate and M&A, litigation & dispute resolutions, real estate and employment practice groups.

Our services
  • Pre-insolvency and insolvency prevention
  • Advice and implementation of cross-border and domestic restructurings including distressed sale of business or assets and debt for equity swaps
  • Advice on reorganisation of business with transfer of business/employees in distressed / insolvency situation, in-court restructuring and related representation in courts
  • Advice and representation in courts regarding court restructurings such as controlled management of commercial or regulated entities
  • Advice and assistance of judicial liquidators and bankruptcy trustees in complex insolvency procedures
  • Advice on directors’ duties and related representation in courts
  • Advice on debt default, enforcement of guarantees and pledges and related representation in court
  • Bankruptcy litigation

Action against director of bankrupt company

MOLITOR advised the trustee in bankruptcy of a Singaporean entity that went bankrupt in Singapore. The trustee wished to bring proceedings against the Singapore Co’s owner, which was registered in Luxembourg, and in particular against one of the owner’s directors. It was claimed that the owner undertook to fund the Singapore Co and that it was on this basis that creditors lent funds to it at a time when it was not making any money. The owner subsequently declined to provide any equity to the Singapore Co which went bankrupt as a result.

Enforcement of pledge

MOLITOR advised and represented the judicial administrators of Spanish entities declared bankrupt. A loan had been granted by a pool of banks, secured by a pledge over shares worth 1.6 billion euro located in a Luxembourg bank account. Despite both clawback actions and conservatory measures being in progress, the pledgees took action to enforce the pledge in Luxembourg.

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