Understanding French insolvency proceedings is essential for any business facing financial difficulties. This guide explains the three main collective procedures available under French law.
Safeguard Procedure (Sauvegarde)
The safeguard procedure is designed for companies that are not yet in cessation of payments but face difficulties they cannot overcome alone.
Key features:
- Automatic stay on creditor claims
- Observation period of 6 months (renewable once, up to 12 months total)
- Possibility of a continuation plan over 10 years
- Management remains in control
Judicial Reorganization (Redressement Judiciaire)
When a company is in cessation of payments but recovery appears possible, judicial reorganization provides a framework for turnaround.
Process:
- 6-month observation period (renewable)
- Assessment of recovery viability
- Either continuation plan or sale as a going concern
Judicial Liquidation
When recovery is manifestly impossible, judicial liquidation ensures orderly asset distribution to creditors.
Procedure:
- Immediate cessation of activity (unless temporary continuation)
- Asset realization
- Payment of creditors according to ranking
Contact Mac Mahon Avocats for expert representation in all insolvency matters.
Les informations contenues dans cet article sont fournies à titre purement informatif et ne constituent pas un conseil juridique. Elles ne sauraient engager la responsabilité du Cabinet Mac Mahon Avocats. Pour toute question spécifique à votre situation, nous vous invitons à consulter un avocat.
Besoin d'un accompagnement juridique ?
Nos avocats sont à votre disposition pour vous conseiller et vous accompagner dans vos démarches.