Innovations to the Act in late 2015 seek to modernize and simplify collective proceedings in OHADA member states.

Introduction

The ongoing financial crisis has not left France untouched. The number of company insolvencies rose considerably in 2013: while judicial rehabilitation proceedings remained stable, liquidation proceedings increased by 4% from 2012, and “safeguard” proceedings (a procedure inspired by “Chapter 11” proceedings in the United States) increased by 9%. Pre-insolvency proceedings such as judicially-supervised conciliation and ad hoc mediation reached an all-time high, 24% over 2012.

Introduction

Inspired by the American “prepackaged restructuring plan,” the French authorities have yet again decided to reform French insolvency law, with the creation of an “accelerated financial safeguard procedure” (procédure de Sauvegarde Financière Accélérée). This procedure is available to debtors who start conciliation proceedings after 1 March 2011.

A new form of bankruptcy procedure, Accelerated Financial Safeguard (sauvegarde financière accélérée, “AFS”) was adopted by the French Parliament on October 22, 2010.

Decree n°2011-236 of 3 March 2011 (OJ of 4 March 2011) details the so-called sauvegarde financière accélérée introduced by Law n°2010-1249 of 22 October 2010 (OJ of 23 October 2010) (

Article L 611-4 to L 611-15 of the French Commerce Code.

Act n° 2005-845 of 26 July 2005, as completed and amended, has created a new out-of-court settlement process known under French law as “Conciliation,” replacing the former amicable settlement or “règlement amiable.”

A new form of bankruptcy procedure, Accelerated Financial Safeguard (sauvegarde financière accélérée, “AFS”) was adopted by the French Parliament on October 22, 2010.

Decree n°2011-236 of 3 March 2011 (OJ of 4 March 2011) details the so-called sauvegarde financière accélérée introduced by Law n°2010-1249 of 22 October 2010 (OJ of 23 October 2010) (