Bankruptcy Law

Pursuant to Article L. 622-7, II of the Commercial Code, applicable to the receivership procedure by reference to Article L. 631-14, the bankruptcy judge may authorize the debtor to compromise or reach a settlement. When a receiver has been appointed to assist the debtor in all or some of the acts relating to management, they exercise this prerogative concurrently. On the other hand, the receiver  …

Negotiated solutions authorization

Pursuant to Article L. 622-7, II of the Commercial Code, applicable to the receivership procedure by reference to Article L. 631-14, the bankruptcy judge may authorize the debtor to compromise or reach a settlement. When a receiver has been appointed to assist the debtor in all or some of the acts relating to management, they exercise this prerogative concurrently. On the other hand, the receiver compromises or settles on his own when he is in charge of administration .

A final inspection report, in which the debtor and his creditor agree to mutual concessions, the purpose of which is to put an end to a dispute, constitutes a transaction subject to the authorization of the bankruptcy judge . A transaction can and must be authorized by the bankruptcy judge, even if it leads to the payment of claims predating the judgment opening the insolvency procedure, when it facilitates the continuation of the business . Conversely, the fact that the purpose of the transaction is not the payment of a pre-commissioning debt does not exempt the debtor from having to obtain the authorization of the bankruptcy judge .

Authorization must be granted before the transaction is concluded . In fact, the bankruptcy judge hearing the homologation of a transaction agreement concluded in the absence of prior authorization on his part cannot regularize the situation by authorizing the disputed transaction a posteriori . Accordingly, the request submitted by the debtor and the receiver to the bankruptcy judge for authorization to settle with the lessor must be rejected when the latter's proposal and acceptance, although given subject to this authorization, took place prior to the latter .

Article L. 622-7, II specifies that if the compromise or transaction is likely to have a decisive impact on the outcome of the procedure, the bankruptcy judge may only rule on it after having obtained the opinion of the public prosecutor. Failure to comply with this essential formality would constitute a misuse of powers and render the order null and void .

CA Caen, 19 March 2020, LawLex202200001040JBJ (RJ).

CA Chambéry, 1st December 2009, LawLex202200000705JBJ (S).

Cass. com., 5 January 1999, LawLex202100002263JBJ (RJ).

Cass. com., 26 November 2002, LawLex202100005074JBJ (RJ).

CA Douai, 28 March 2013, LawLex202200000707JBJ (S).

Cass. com., 20 January 2021, LawLex202200000781JBJ (RJ).

CA Toulouse, 9 May 2018, LawLex202200000704JBJ (RJ).

Bankruptcy Law

356. Negotiated solutions authorization

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Les notions juridiques connexes

356. Negotiated solutions authorization

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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