Originally from Attachment of Assets

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1. What is the general nature and effect of judicial measures available for plaintiffs to obtain provisional relief affecting property of debtors to obtain security for judgments to be obtained (“attachments”)? Freezing property in place? Placing it in the custody of a third party, such as a court official, sheriff or marshall?

Luxembourg law provides for several types of conservatory attachment proceedings in respect of a debtor's assets located in Luxembourg. In practice, third-party attachment proceedings are the most frequently used. 

Third-party attachment proceedings (saisie-arrêt—Article 693 of the New Code of Civil Procedure) are proceedings by which a creditor (the attaching party) requests the blocking of certain amounts or assets owed by a third party (the attached third party) to its debtor, and whereby the creditor ultimately seeks to obtain delivery of those amounts or of the proceeds of the forced sale of the assets. Once the attachment has been served on the third party, the latter is no longer authorized (under penalty of being personally liable vis-à-vis the attaching party) to allow the debtor or any third party to dispose of the attached funds or assets. 

Another type of proceeding generally available under Luxembourg law is the conservatory commercial attachment (saisie conservatoire commerciale—Article 550 of the New Code of Civil Procedure). This type of proceeding may be initiated against “commercial” parties (including companies) and allows a creditor to seize movable assets owned by its debtor that are located in Luxembourg. In order to resort to this type of proceeding, the creditor must prove that the underlying claim is sufficiently certain, liquid or readily quantifiable, and that the recovery of its debt is seriously at risk.