Bankruptcy Law

Article L. 626-2(1) of the Commercial Code allows the debtor, with the assistance of the receiver if one has been appointed, to propose a plan in light of the economic, social and, where applicable, environmental assessment. The debtor, who remains in charge of the company, may draw up a draft plan, whether or not a receiver has been appointed .

The text specifies the contours of the draft plan, which must mention the commitments to make cash flows made for the performance of the plan and determine the prospects for recovery according to the possibilities and modalities of activities, the state of the market and the available means of financing. It must also define the terms of payment of the debts and any guarantees that the debtor undertakes to provide to ensure performance, and set out and justify the level and prospects of employment as well as the social conditions envisaged for the continuation of the business. Where redundancies for economic reasons are envisaged, the plan must recall the measures already taken and define the actions to be taken in order to facilitate the redeployment and compensation of employees whose jobs are threatened. Finally, the plan must list, append and analyze acquisition offers for one or more activities presented by third parties and indicate the activity or activities that it suggests be discontinued or added.

Finally, when the debtor is engaged in an activity that benefits from an administrative authorization, approval, agreement or accreditation, Article L. 626-2-1 of the Commercial Code requires the debtor to consult the administrative authority or the control and pricing authority when drawing up the draft plan.

Cass. com., 25 March 1997, LawLex202200004071JBJ (RJ).

245. Proposal of the debtor, where applicable assisted by the receiver