France

French insolvency law provides for three main types of procedures:

• a safeguard procedure (procédure de sauvegarde) allows an entity facing financial difficulties to undergo a restructuring at a preventive stage under the court’s supervision;
• a judicial reorganisation (redressement judiciaire) allows an entity which has been declared insolvent to continue as a going concern through the appointment of an insolvency administrator and the implementation of a reorganisation plan; and
• a winding-up procedure (liquidation judiciaire) is ordered by the court when it considers that the entity is unlikely to recover.

The type of procedure initiated will determine the judicial officer in charge of the insolvency proceedings. In the case of a safeguard procedure or a judicial reorganisation, the distressed company’s directors will continue to manage the company but under the supervision and with the assistance of an administrator appointed by the French courts. In the case of winding-up proceedings, the French courts will appoint a liquidator who will act for and on behalf of the company for the duration of the insolvency procedure.