French Insolvency Proceedings: La Révolution a Commencé

There are several types of proceedings under French law that are available to a debtor depending on whether it is solvent or insolvent and with different consequences as to the treatment of creditors. The current proceedings available can be classified into two subgroups. The first one includes cour...

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Bibliographic Details
Published in:American Bankruptcy Institute journal 2014-11, Vol.33 (11), p.20
Main Authors: Gallagher, Adam, Rousseau, Aude
Format: Article
Language:English
Subjects:
Agreements
Bankruptcy
Bankruptcy laws
Corporate debt
Court hearings & proceedings
Creditors
Insolvency
Mediation
Negotiations
Solvents
State court decisions
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Summary:There are several types of proceedings under French law that are available to a debtor depending on whether it is solvent or insolvent and with different consequences as to the treatment of creditors. The current proceedings available can be classified into two subgroups. The first one includes court-assisted proceedings -- the so-called mandat ad hoc and conciliation proceedings, which are amicable and flexible proceedings. These proceedings can only be opened by a debtor that is not yet insolvent or, with respect to conciliation proceedings, a debtor that has not been insolvent for more than 45 days. The mandat ad hoc is an amicable procedure that is available to any solvent company that is able to pay its debts with its available assets (using a simple cash-flow test), but that is facing or anticipating legal, economical or financial difficulties. This article does not address reorganization and liquidation procedures.
ISSN:1931-7522