Restructuring and insolvency—France—Q&A guide

The following Restructuring & Insolvency practice note provides comprehensive and up to date legal information covering:

  • Restructuring and insolvency—France—Q&A guide
  • 1. What main legislation is applicable to insolvencies and reorganisations?
  • 2. What entities are excluded from customary insolvency or reorganisation proceedings and what legislation applies to them? What assets are excluded or exempt from claims of creditors?
  • 3. What procedures are followed in the insolvency of a government-owned enterprise? What remedies do creditors of insolvent public enterprises have?
  • 4. Has your country enacted legislation to deal with the financial difficulties of institutions that are considered ‘too big to fail’?
  • 5. What courts are involved? What are the rights of appeal from court orders? Does an appellant have an automatic right of appeal or must it obtain permission? Is there a requirement to post security to proceed with an appeal?
  • 6. What are the requirements for a debtor commencing a voluntary liquidation case and what are the effects?
  • 7. What are the requirements for a debtor commencing a voluntary reorganisation and what are the effects?
  • 8. How are creditors classified for purposes of a reorganisation plan and how is the plan approved? Can a reorganisation plan release non-debtor parties from liability and, if so, in what circumstances?
  • 9. What are the requirements for creditors placing a debtor into involuntary liquidation and what are the effects? Once the proceeding is opened, are there material differences to proceedings opened voluntarily?
  • More...

Restructuring and insolvency—France—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to restructuring and insolvency in France published as part of the Lexology Getting the Deal Through series by Law Business Research (published: June 2021).

Authors: Freshfields Bruckhaus Deringer—Fabrice Grillo; Laurent Mabilat; Stéphanie Corbière; David Albertini

1. What main legislation is applicable to insolvencies and reorganisations?

The provisions relating to French insolvency proceedings are codified under articles L610-1 to L680-7 and article L811.1 et seq of the French Commercial Code and have been reformed on several occasions, including by Law No. 2015-990 of 6 August 2015 for the growth, activity and equality of economic chances (also known as the Macron Law) and Law No. 2016-1547 of 18 November 2016 on the modernisation of twenty-first century justice. Aspects relating to cross-border insolvencies are governed by the EU Regulations Nos 1346/2000 and 2015/848 on insolvency proceedings (the EU Insolvency Regulations) and Ordinance No. 2017-1519 of 2 November 2017 and Decree No. 2018-452 of 5 June 2018 issued in relation to EU Regulation No. 2015/848.

2. What entities are excluded from customary insolvency or reorganisation proceedings and what legislation applies to them? What assets are excluded or exempt from claims of creditors?

Insolvency proceedings provided for in the French Commercial Code apply to:

  1. self-employed individuals;

  2. corporate entities, whether of a commercial or civil nature;

  3. merchants; and

  4. farmers and craftsmen (ie, individuals registered with

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