Mac Mahon Avocats is a Paris business law firm at 33 avenue Mac-Mahon, Paris 17. Its lawyers advise passenger transport businesses on prevention of difficulties, out-of-court procedures, formal insolvency proceedings and distressed disposals under French law. This page sets out the applicable legal framework; it does not constitute legal advice.
Coach operators and road passenger transport, school and intercity services, taxis and private hire companies, medical transport and ambulances, airport shuttles, transport for people with reduced mobility and maritime passenger services.
Passenger transport combines heavy vehicle investment, regulated market access and a significant share of revenue from public contracts or health service arrangements. Coach operators depend on school and intercity contracts awarded by local authorities and on public service delegations; ambulance companies depend on health insurance arrangements and reimbursement times; taxi and private hire operators depend on rank licences or registration. Losing a contract or an arrangement immediately leaves the fleet underused while financing instalments remain due.
| Procedure | Entry condition | Duration | Legal basis |
|---|---|---|---|
| Ad hoc mandate | No cessation of payments | Set by the court president, renewable | Art. L. 611-3 Commercial Code |
| Conciliation | Actual or foreseeable difficulties; cessation of payments for 45 days at most | 4 months + 1 month | Arts. L. 611-4 to L. 611-16 |
| Safeguard | Insurmountable difficulties, no cessation of payments | Observation period 6 months, extendable to 12 | Art. L. 620-1 et seq. |
| Rehabilitation | Cessation of payments, recovery possible | Observation period up to 18 months | Art. L. 631-1 et seq. |
| Liquidation | Cessation of payments, recovery manifestly impossible | Variable; business continuation 3 months, renewable | Art. L. 640-1 et seq. |
A declaration of cessation of payments must be filed within 45 days of that state arising, unless a conciliation request is filed within the same period (Art. L. 631-4 of the French Commercial Code).
A public contract is an ongoing contract; termination cannot be based on the opening of proceedings alone and the administrator may require performance (Art. L. 622-13 Commercial Code). The public purchaser nevertheless keeps its own prerogatives, notably for non-performance or on public interest grounds, under the Public Procurement Code.
Approval and health insurance arrangements follow an administrative regime distinct from insolvency proceedings. They are not withdrawn merely because proceedings open, but continued compliance with operating conditions is required, and transfer to a purchaser requires a decision of the competent authorities.
Sums paid before the opening judgment are pre-opening claims to be filed within two months of publication in the BODACC (Art. L. 622-24 Commercial Code). Their outcome depends on the proceedings; services provided afterwards fall under the ongoing contracts regime.
Where the sale plan transfers an autonomous economic entity retaining its identity, the employment contracts attached to it continue automatically with the purchaser (Art. L. 1224-1 Labour Code). The judgment also sets the number of economic dismissals authorised.
The diagnosis addresses whether the fleet and headcount match the remaining turnover. Confidential out-of-court procedures allow vehicle financing and public instalments to be renegotiated before cessation of payments, which must be declared within 45 days of arising (Art. L. 631-4 Commercial Code).
Insolvency proceedings are identical, but ship security interests, vessel arrest, seafarers' claims and the cross-border dimension governed by Regulation (EU) 2015/848 are added. A separate page covers the maritime, shipping and ports sector.
Phone: +33 1 45 03 20 20
Email: accueil@macmahon-avocats.fr
Address: 33 avenue Mac-Mahon, 75017 Paris, France