French reforms improve creditor rights

Author: | Published: 24 Mar 2014

The final version of Frances’s new insolvency law is a watered down version of the original proposal, but it still greatly enhances creditor rights. Here’s how it impacts different restructuring players

On March 14, ordonnance no 2014-326 reforming French insolvency law was published in the official journal. The new rules apply to all proceedings that open on or after July 1, but they will have direct influence on negotiations before that date. The changes were eagerly awaited by practitioners, as they reallocate rights to banks and will enhance lender-led restructurings. But the legislator did not promote bondholders' rights and diffused various restrictive provisions. It means that this reform only plants a seed of change in France's insolvency landscape. It will be the responsibility of practitioners to enhance and tailor these new rules to create a dynamic French restructuring market.

Here's how the changes affect different parties in the...