Bankruptcy Law

The mission of the ad hoc agent is defined by the president of the court  in the ordinance appointing him . His tasks are twofold. Firstly, he assists the debtor, who remains in office , in the management of his company. Secondly, he participates in the negotiation of an agreement with the debtor's creditors, with a view to obtaining payment deadlines or debt remission, which implies both identifying those with whom negotiations can be opened and getting acquainted with all the elements that make it possible to assess the economic, legal and financial situation of the debtor.

The ad hoc agent, whose function is limited to seeking an agreement with the creditors, exceeds his powers and is liable if he attempts, after negotiations have failed, to impose the sale of an asset . Similarly, a creditor called upon to negotiate is not obliged to accept the proposals of the agent .

At the end of the negotiation, a memorandum of understanding, which has the same value as a contract, is concluded with the participants.

The Commercial Code does not specify the duration of the agent's mission. It ends when the period fixed for the execution of the mission has elapsed or when the mission has been executed. It also ends when the debtor makes a request to the president of the court  to this effect. Conversely, the ad hoc agent may inform the president of the court without delay of any element that could justify the termination of his mission .

Commercial Code, Art. L. 611-14 and R. 611-19(2).

Court of Cassation, 15 March 2017, LawLex202100000940JBJ, holding, since the appointment of an ad hoc agent does not have the effect of divesting the head of the company of his powers, that if a new director is appointed following the death of his predecessor, he alone will have the capacity to bind the company and exercise a remedy.

Cass. com., 1er February 2011, LawLex202100001235JBJ.

Cass. com., 22 September 2015, LawLex202100001232JBJ.

21. Mission of the ad hoc agent