There are three broad types of insolvency procedure in France:

• The sauvegarde or “safeguard” procedure: the debtor must be faced with financial difficulties but not be insolvent. The purpose is to pre-empt a worsening of the situation.
• The receivership (redressement) procedure, in which the company is insolvent but there may chances of recovery
• The liquidation procedure, in which the company cannot be turned around.