Bankruptcy Law

In accordance with Article L. 631-19(7) of the Commercial Code, if the draft plan is not adopted in accordance with the provisions of Article L. 626-31 or Article L. 626-32 and Article L. 631-19, the provisions relating to the classes of affected parties  are no longer applicable and a new draft plan is drawn up in accordance with the conditions set out in the provisions relating to the ordinary l …

Assumptions for failure to adopt the draft plan

In accordance with Article L. 631-19(7) of the Commercial Code, if the draft plan is not adopted in accordance with the provisions of Article L. 626-31 or Article L. 626-32 and Article L. 631-19, the provisions relating to the classes of affected parties  are no longer applicable and a new draft plan is drawn up in accordance with the conditions set out in the provisions relating to the ordinary law receivership procedure.

The draft plan may be deemed not to have been adopted if, on the one hand, it has been adopted by each of the classes in accordance with the provisions of Article L. 626-30-2, but it appears a posteriori that the conditions of Article L. 626-31  were not met. The court may also refuse to adopt the plan if it does not offer a reasonable prospect of avoiding the debtor's cessation of payments or guaranteeing the viability of the business.

In the absence of adoption of the plan by the classes of affected parties, in accordance with the provisions of Article L. 626-30-2, no draft plan must be adopted if the debtor, the receiver with the agreement of the debtor, or an affected party does not request the court to adopt the plan, or if, despite such a request, the conditions of Article L. 626-32 are not met  and the court is unable to do so.

C. com. III of Chapter VI of Title II of Book VI.

Pursuant to art. L. 626-31, the plan must be adopted in accordance with Art. L. 626-30 (definition of the assigned parties, knowledge of the subordination agreements, composition of the classes of the assigned parties, exclusion from the plan of wage and maintenance claims, submission to each assigned party of the procedures for dividing the plan into classes and calculating votes); there must be sufficient commonality of interests within the same class; equal treatment of the assigned parties must be ensured; all assigned parties must be duly notified of the plan; the plan must not place dissenting assigned parties at a disadvantage; the financing required to implement the plan must be guaranteed and must not unduly harm the interests of the assigned parties.

Art. L. 626-32 requires: compliance with the conditions of Art. L. 626-31; approval of the plan by a majority of the classes of assigned parties or, failing that, by at least one of the minority classes of assigned parties; satisfaction of creditors who voted against the plan by identical or equivalent means where a lower-ranking class is entitled to a payment or retains an interest under the plan; prohibition for the classes of assigned parties, under the plan, from receiving or retaining more than the total amount of its claims or interest; disapproval by one or more classes of holders of capital.

Bankruptcy Law

566. Assumptions for failure to adopt the draft plan

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Les notions juridiques connexes

566. Assumptions for failure to adopt the draft plan

Demandez un accès gratuit au contenu exclusif Livv – juristes d’entreprise

Les notions juridiques connexes

Demandez un accès gratuit
au contenu exclusif Livv – juristes d’entreprise