Bankruptcy Law

Article L. 626-18(4) of the Commercial Code allows the court to impose uniform payment terms on creditors who have not accepted payment terms, remissions or the conversion of their claims into capital securities. The court alone has the power to impose uniform payment terms on creditors who have refused payment terms and remissions, without the latter having to be consulted .
In such a case, the a …

Uniform payment terms

Article L. 626-18(4) of the Commercial Code allows the court to impose uniform payment terms on creditors who have not accepted payment terms, remissions or the conversion of their claims into capital securities. The court alone has the power to impose uniform payment terms on creditors who have refused payment terms and remissions, without the latter having to be consulted .

In such a case, the amount of each of the annual instalments provided for in the plan, starting in the third year, may not be less than 5% of each of the admitted claims, and, starting in the sixth year, 10%, except in the case of an agricultural operation. The payment terms imposed may not exceed the duration of the plan .

In addition, where the principal of a claim remains due in full on the date of the first payment provided for in the plan, its repayment begins on the date of the annual instalment provided for in the plan that follows the due date stipulated by the parties before the opening of the procedure. On this date, the principal is paid up to the amount that would have been collected by the creditor if it had been subject since the beginning of the plan to the uniform payment terms imposed by the court on other creditors. The amount paid in respect of subsequent annual instalments shall be determined in accordance with the uniform payment terms imposed on other creditors. If no creditor has been subject to uniform payment terms, the amount paid for subsequent annual installments shall be equal annual fractions of the outstanding principal amount.

Lastly, Article L. 626-19 provides that the plan may provide for an option for creditors involving payment within a shorter uniform term but with a proportional reduction in the amount of the claim. The reduction of the claim is definitively acquired only after payment, at the fixed term, of the last due date provided for in the plan for its payment.

Cass. com., 6 February 1996, LawLex202200004106JBJ (RJ).

For an application, see CA Saint-Denis de la Réunion, 13 April 2021, LawLex202200006044JBJ (S).

Bankruptcy Law

251. Uniform payment terms

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251. Uniform payment terms

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

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au contenu exclusif Livv – juristes d’entreprise