France has been the most active market in Europe for financial restructurings over the past two years due to the high level of economic challenges currently facing the country. As part of a plan to simplify and shore up the laws governing restructuring and insolvency, dating back to the introduction of the ‘sauvegarde’ procedure in 2005, the French government has put in place a number of new orders that have the potential to significantly affect debtors and creditors facing insolvency proceedings.
The last significant changes to the current regime result from the orders dated 12 March 2014 and 26 September 2014 and are applicable to proceedings opened as of 1 July 2014.
In the attached presentation we outline how these new orders alter the current law and the affect they may have on French insolvency proceedings. Specifically, we cover:
- The key points you need to know about the new orders, including the impact on creditors versus debtors;
- An overview of the current regime, including mandat ad hoc, conciliation, safeguard proceedings, reorganisation and liquidation;
- Specifics rules applicable to listed companies; and
- French banking monopoly rules and debt trading.