First of Its Kind: U.S. Bankruptcy Court Recognizes Proceeding Under Luxembourg's New Restructuring Regime in Chapter 15 Case

30 March 2026

On March 25, 2026, the United States Bankruptcy Court for the Southern District of New York (the "Bankruptcy Court") recognized ARD Finance, S.A.'s Luxembourg judicial reorganization proceeding (procédure de réorganisation judiciaire par accord collectif) as a foreign main proceeding under Chapter 15 of the U.S. Bankruptcy Code (the "Bankruptcy Code") over the objection of certain creditors arguing that the proceeding was not a "collective proceeding" and that it was manifestly contrary to US public policy. Notably, this is the first Chapter 15 recognition of a proceeding commenced pursuant to Luxembourg's law of 7 August 2023 on business preservation and modernisation of the bankruptcy regime (the "Luxembourg Restructuring Law").

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