The World Today
Luxembourg foreclosures hit assets and generate complaints about lack of information
Context and main facts: The Panamanian company claiming the award initiated proceedings in Luxembourg at the end of 2024, and the specific measures were implemented in November. Media reports indicate that the enforcement resulted in seizures of funds or collection rights linked to the Uruguayan State in numerous banking entities in that financial center. The amount shown in the records as finally paid by the State amounts to US$64,396,520, with payment recorded on June 3, 2025, and the notification of the lifting of the measures dated August 27, 2025.
PLUNA context and demand
The claim arose from Latin America Regional Aviation Holding (LARAH) following the closure of the airline PLUNA and resulted in an arbitration award that the company enforced internationally. The choice of Luxembourg was based on practical criteria: it concentrates custody and mechanisms for enforcing international titles and orders, a common practice in disputes with transnational components. The decision to process the enforcement in that jurisdiction allowed the claimant to request preservation and seizure orders.
Arbitration Award: How It Reached Luxembourg
An arbitration award, once recognized, can become enforceable in various jurisdictions if local legal requirements are met; in this case, the plaintiff submitted the necessary documentation to operate in Luxembourg. The formal measures began to be notified and implemented in mid-November 2024, according to sources consulted by the press, and ultimately affected instruments or potential receivables from the State in several institutions.
Affected public accounts and scope
The publications consulted mention up to 37 financial institutions where measures were allegedly imposed on assets or collections from the Uruguayan state. This does not necessarily imply that each account was actually emptied , but rather that they were affected by retention orders while the claim was resolved. The payment shown in official and journalistic records was US$64,396,520, and the administrative lifting of the embargoes was publicly announced in August 2025.
Luxembourg financial center and embargo mechanisms
Luxembourg serves as a custody and settlement center for international instruments; therefore, it is a common venue for this type of enforcement. This jurisdiction has clear procedures for admitting and enforcing recognized foreign securities or arbitral awards, making it easier for creditors to obtain injunctive relief on assets located there.
Political disagreements and communication problems
During the transition between administrations, there were disagreements regarding the available information: the outgoing administration claimed it had not been formally notified in November 2024, while the incoming administration claimed that some information about the measures was "hidden" during the transition. Public tension centered more on institutional communication than on the technical nature of implementation.
The article is based on investigations by El País and El Observador, official statements from the Presidency, and legal analyses of embargoes in Luxembourg.
