Evaluating France's introduction of the classes of affected parties mechanism – International Financial Law Review

The French system for dealing with companies in difficulty comprises two categories of procedure:

• Amicable procedures (namely, mandat ad hoc and conciliation), which aim to reach an agreement with the main creditors through confidential negotiations under the aegis of a third party appointed by the president of the court; and

• Collective legal proceedings (namely, safeguard, accelerated safeguard, receivership, crisis exit, judicial liquidation), which are characterised, in particular, by restrictive measures for creditors:

  • Suspension of legal proceedings against the debtor;

  • Prohibition on the debtor paying claims arising prior to the opening judgment; and

  • Continuation of current contracts, which cannot be terminated on the sole…

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