This note sets out the duties of the following directors of French companies with a particular focus on the duties owed by such directors of companies in financial difficulties:
When executing public M&A transactions, dealmakers need to understand local market practice as well as the local regulatory environment.
1. Background
The sauvegarde filing by Camaïeu’s holding company Modacin France SAS (Holdco) has been reported in the French press as one of the first cases where a safeguard proceeding has been opened by a company’s management in order to prevent its creditors from enforcing the fiducie previously granted to them over the shares of Holdco’s subsidiary as part of a court-approved restructuring proceeding (conciliation) of the group back in 2016.
Presented as a major measure of the five-year French presidential term, the law “on growth and business transformation”, also known as the PACTE Act, came into force on May 24th, 2019. Amongst the changes that were brought, some of them deserve a particular focus.
Two phases of the reform. The PACTE Act revises the insolvency legal framework and mainly empowers the executive to directly implement the EU insolvency directive and to reform the law on security interests within a period of two years.
The first phase of the reform
Saam Golshani and Alexis Hojabr, White & Case LLP
This is an extract from the first edition of GRR's The Art of the Pre-Pack. The whole publication is available here.
Following on the heels of the Gilets Jaunes protests and the strikes last December and January, Covid-19 is likely to be the final blow for companies that are already on shaky ground. The most heavily affected sectors will certainly be retail (which has been struggling for several years), tourism, air travel and events.
French businesses face significant business disruption, as does any country faced with restrictions in place to curb movement of people because of Covid-19.
In this blog we consider what the restrictions are in France and what help is on offer.
What restrictions are in place and why is this impacting businesses?
The current restrictions, announced on March 16, 2020 by the President of the Republic are designed to minimize contact and travel and will be in place from Tuesday, March 17 at 12:00 p.m., for a minimum of fifteen days.
COVID-19 and government measures to fight it may significantly affect M&A transactions
French courts are closed for the unknown duration of the COVID-19 lockdown. Businesses facing immediate difficulties may still file for emergency or restructuring proceedings. Filings must be made electronically and hearings will be conducted remotely.
Court Closures