Restructuring & insolvency lawyer — Transport & logistics sector

Mac Mahon Avocats is a Paris business law firm at 33 avenue Mac-Mahon, Paris 17. Its lawyers advise transport & logistics 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.

Sector scope

Road freight and passenger transport, parcel delivery, warehousing, freight forwarding and logistics.

Sector context

Transport carries a largely financed vehicle fleet, direct exposure to fuel prices and low margins relative to turnover. Difficulties translate quickly into cash pressure given the level of fixed costs.

Key legal issues

Leasing and long-term rental of the vehicle fleet
Transport licences and the required financial standing
Freight forwarder's lien and pledge over goods
Subcontracting and reclassification risk
Sale of the business, customer base and framework agreements

How a matter is handled

Diagnosis: review of available cash, due and payable liabilities, tax and social security instalments and existing security, in order to establish whether cessation of payments is characterised (Art. L. 631-1 Commercial Code).
Choice of procedure: arbitration between confidential out-of-court tools (ad hoc mandate, conciliation) and formal proceedings, in light of the sector's own timetable.
Negotiation: discussions with banks, strategic suppliers, the AGS wage guarantee scheme, the tax authorities and URSSAF, and where relevant before the CCSF.
Implementation: preparation of the filing, representation before the commercial courts, monitoring of the observation period, and preparation of the plan or of the sale.

French procedures at a glance

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).

Frequently asked questions

When must cessation of payments be declared?

Within 45 days of the state of cessation of payments arising — defined as the inability to meet due liabilities with available assets (Art. L. 631-1) — unless a conciliation request is filed within the same period (Art. L. 631-4 of the French Commercial Code).

Are out-of-court procedures confidential?

Yes. Ad hoc mandate and conciliation are subject to a confidentiality duty and the appointing order is not published. Only the judgment approving a conciliation agreement is made public.

Which court has jurisdiction?

The commercial court of the registered office for traders and commercial companies, or the economic activities court or judicial court depending on the nature of the activity (Art. R. 600-1 of the French Commercial Code).

Can a business be acquired during proceedings?

The court may adopt a sale plan covering all or part of the business where the statutory conditions are met, designating the contracts necessary to the continuation of the business (Arts. L. 642-1 and L. 642-7 of the French Commercial Code).

Contact

Phone: +33 1 45 03 20 20
Email: accueil@macmahon-avocats.fr
Address: 33 avenue Mac-Mahon, 75017 Paris, France