41 avenue de Flandre 59290 WASQUEHAL    + 33 (0) 6 76 77 38 11

Strat&Juris
Law office

What are the powers of the French Commercial Court to prevent insolvency and financial difficulties?

Latest News What are the powers of the French Commercial Court to prevent insolvency and financial difficulties?

The Commercial Court can summon the director or CEO to a meeting in order to discuss the financial position and possible remedial measures.

The company can request the appointment of an agent appointed by the court to assist with negotiations with certain creditors. The advantage is that the process would be confidential and flexible.

Another mechanism would be a conciliation procedure which is more formal but which would enable the company to try to reach a settlement with its creditors.