France

France is proposing to overhaul bankruptcy rules for the second time in four years to speed up restructuring procedures and give creditors greater powers, Bloomberg Businessweek reported. The measures make it simpler for companies to negotiate with lenders using a court-appointed mediator under a process known as ‘conciliation,’ according to an e-mailed statement from the Ministry of Justice. Under the proposals, businesses will also have to consider alternative restructuring plans put forward by lenders and there will be greater protection for rescue financing offered by investors.

French retailer Vivarte has made a start to restructure its burdensome debt pile by entering a four-month conciliation process, the company announced in a statement on Monday, Reuters reported. A mandataire ad hoc was previously appointed to mediate talks between Vivarte and its lenders after Vivarte failed to get agreement from two-thirds of its lenders to suspend loan covenant tests by a deadline of January 22. In response, lenders appointed financial advisory firm Houlihan Lokey.

French steel maker Ascometal went into administration on Friday, putting at risk up to 2,000 jobs in a fresh headache for the Socialist government as it tries to bring down unemployment from record levels, Reuters reported. Ascometal, whose roots lie in the former French steel firm Usinor that was later absorbed by No. 1 global steel giant ArcelorMittal, has been hurt by an economic downturn in Europe, particularly in the automotive sector. Declining demand in Europe, where Ascometal generates most of its sales, has undermined a 2011 takeover of the company by U.S.

Air France-KLM Group, Europe’s largest airline, is getting a makeover ranging from high-end seats to bigger entertainment screens as Chief Executive Officer Alexandre de Juniac attempts a turnaround from near bankruptcy, Bloomberg News reported. De Juniac, who became CEO in July, is coupling luxury perks such as gourmet meals with a push to trim spending that will erase almost 10,000 jobs from 2011 into 2015. With fliers ready to spend more, investing in the customer experience goes hand in hand with savings, he said.

French unemployment was at a record high in January, adding to the woes of François Hollande, the president, in the run-up to municipal elections next month, the Financial Times reported. The number of jobseekers increased 0.3 per cent compared with December and swelled the ranks of the unemployed in the eurozone’s second-largest economy by 8,900 people. The latest figure, published on Wednesday by the labour ministry, brings the total number of unemployed to a record 3.32m – about 11 per cent of the workforce.

France and Germany have pledged to reach a deal on a European financial transaction tax by the end of May in a bid to give some impetus to efforts to find accord on the issue, the Financial Times reported. But the two governments have yet to bridge divisions on how the so-called “Robin Hood” levy would be applied in the 11 EU states that have signed up to implement the tax. François Hollande, the French president, said after a joint Franco-German government meeting in Paris that trying to find the perfect formula for an FTT would only help those who wanted to neutralise it.

Unions at France's second-biggest courier business have agreed a deal that saves 2,150 jobs but offers little solace to French President Francois Hollande's efforts to reduce unemployment, Reuters reported. Workers at Mory-Ducros had been locked in dispute with majority shareholder Arcole Industries for weeks, occupying several company sites after the courier business filed for bankruptcy in November and launched a restructuring programme that put 5,200 jobs in jeopardy.

Troubled building group Siac’s main shareholders, the Feighery family, will take control of the business with the backing of a French-owned construction-related business and a private investment company, it was confirmed yesterday, the Irish Times reported. The High Court appointed Michael McAteer of Grant Thornton as examiner to Siac Construction and eight related companies late last year, giving them protection from creditors, including three banks owed €42 million and suppliers owed €26 million.

A consortium backed by French giant, Bouygues, looks poised to take over troubled building group, Siac, after the original preferred bidder for the company, businessman Brian Harvey, decided against going ahead with an offer, the Irish Times reported. The High Court appointed Michael McAteer of Grant Thornton as examiner to Siac Construction and eight related companies late last year, giving them protection from creditors, including three banks owed €42 million.

French President Francois Hollande received approval from the country’s constitutional court to proceed with his plan to tax salaries above 1 million euros at 75 percent for this year and next, Bloomberg News reported. Under Hollande’s proposal, companies will have to pay a 50 percent duty on wages above 1 million euros ($1.4 million). In combination with other taxes and social charges, the rate will amount to 75 percent of salaries above the threshold, the court wrote in a decision published today.