What is redressement judiciaire in france?
Insolvency procedure (redressement judiciaire): this is the final step that can be taken to rescue a company. It includes cases where the criteria for the previous steps are not applicable and the company has stopped its payments for longer than 45 days.
What is a judicial liquidation?
an assignment of the debtor by one or more of its creditors; a seizure of the Court; a seizure of the Court at the request of the public prosecutor.
What is a sauvegarde in france?
An administrator (administrateur) who supervises or assists the management to prepare a safeguard plan (plan de sauvegarde).
What is safeguard proceedings?
The safeguard procedure concerns companies which are not in a state of insolvency (the company being unable to pay its debts) but are facing difficulties that they can not overcome and may lead them to insolvency.
What is mandataire ad hoc?
Mandat ad hoc A mandataire ad hoc – insolvency practitioner – is appointed in order to assist negotiations with the debtor’s principal creditors but the debtor maintains full control of its assets. The debtor must cooperate with the mandataire ad hoc and the major creditors to negotiate a solution to its difficulties.
What is French insolvency?
The French insolvency test is a pure cash-flow test: a company is deemed insolvent (en état de cessation des paiements) when it is unable to meet its due and payable liabilities out of its available assets (those in the form of cash or those that can be quickly turned into cash), taking into account undrawn committed …
What is the suspect period?
In order to safeguard the interests of creditors, the period between the cessation of payments and the declaration of bankruptcy is deemed a “suspect period”. any mortgage or any other rights in rem granted by the debtor for debts contracted before the cessation of payments.