The reform resulting from Order no. 2021-1193 dated September 15, 2021 is applicable to proceedings initiated as of October 1, 2021

French insolvency law is undergoing a far-reaching reform, 7 years after the last major reform that came from Order No. 2014-326 of March 12, 2014. This reform is the result of Order No. 2021-1193 amending Book VI of the French Commercial Code, adopted by the Council of Ministers on Wednesday, September 15, 2021 (the Order).

Insolvency in France – an Introduction

The French ecosystem is facing a major paradigm shift.

While companies and major businesses have benefited for several years from cheap debt due to an abundance of liquidity (fuelled by banks, alternative providers of funding and private debt) and an accommodating monetary policy characterised by extremely low interest rates, they are now facing a sharp liquidity rarefication.

1. State of the Restructuring Market

1.1 Market Trends and Changes