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
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