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Insolvency and bankruptcy

28 October 2021 | Sophia El Makhoukhi

Mismanagement by a manager who did not prompt the regularization of the shareholders’ equity: Further clarification from the French Supreme Court

The liability of the manager of a company placed in judicial liquidation is often sought on the basis of Article L. 651-2 of the French Commercial Code which allows the court, in the event of mismanagement having contributed to the company’s shortfall of assets, to decide that the amount of this shortfall shall be borne, in whole or in part, by said manager.

In a decision issued on September 8, 2021, the Cour de Cassation (French Supreme Court) has clarified the application of this Article to a manager who did not convene the shareholders to regularize the situation of the company, the shareholders’ equity of which had fallen below half of the share capital.

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29 June 2021 | Soulier Avocats

The judicial crisis recovery management procedure: A new temporary tool for businesses in financial distress because of the health crisis

Seeking to ensure the survival of companies that could become insolvent in the coming months due to the phasing-out of the support measures that have been put in place, the French legislator has adopted a Law introducing a new procedure, i.e., the judicial crisis recovery management procedure.

This temporary procedure is of particular interest to debtors who may be experiencing short-term difficulties caused by the COVID-19 health crisis and who wish to benefit from a simple and rapid mechanism for spreading out their current liabilities over a long period of time.

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28 January 2021 | Sophia El Makhoukhi

COVID-19: What measures are still available to distressed companies?

Law No. 2020-1525 of December 7, 2020 on the acceleration and simplification of public action (often referred to under its French acronym “ASAP” Law) has extended until December 31, 2021 a number of derogations that adapt French legal provisions governing distressed companies to the COVID-19 health crisis.

The adoption of this Law provides the opportunity to recall the various measures that remain applicable to date.

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1 July 2020 | Catherine Nommick

COVID-19: Legal issues, considerations and tips as of July1, 2020

The COVID-19 pandemic affect billions of people worldwide and has an increasingly devastating impact on the economy.

Companies are facing new challenges and the need for practical legal advice is more important than ever. Legal concerns relate to health restrictions, corporate governance, contracts, business transactions, insurance, insolvency and others.

In order to best assist our clients in these difficult times, we have prepared a summary of the main issues that businesses may face as a result of COVID-19.

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30 January 2017 | Catherine Nommick

How should credit reserves be taken into account in determining the state of cessation of payments of a company?

In a decision dated November 29, 2016, the Commercial Chamber of the Cour de Cassation (French Supreme Court) further specified the conditions for the implementation of Article L.631-1§1 of the French Commercial Code that addresses the rules according to which credit reserves or moratoria granted to a debtor company should be taken into account in […]

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