Bankruptcy Law

The law allows debtor companies of significant economic size to consult their creditors collectively, grouping them according to the nature of their claim. Prior to the entry into force of the Ordinance of 15 September 2021 , Article L. 626-29 of the Commercial Code provided for creditors to be consulted in committees if their accounts were certified by a statutory auditor or drawn up by a charter …

Composition of the classes of affected parties

The law allows debtor companies of significant economic size to consult their creditors collectively, grouping them according to the nature of their claim. Prior to the entry into force of the Ordinance of 15 September 2021 , Article L. 626-29 of the Commercial Code provided for creditors to be consulted in committees if their accounts were certified by a statutory auditor or drawn up by a chartered accountant, if they had more than 150 employees or if their turnover exceeded EUR 20 million. Directive No 2019/1023 of 20 June 2019  subsequently introduced the broader category of “classes of affected parties”, which the Ordinance of 15 September 2021 transposed into French law and replaced that of “creditors' committees”.

The change in the name and composition of the committees was accompanied by a change in the thresholds for convening meetings. Article R. 626-52 of the Commercial Code  now reserves the right to convene creditors in affected party classes to debtors with at least 250 employees and net sales of at least EUR 20 million, or to debtors with net sales of at least EUR 40 million at the date of the application to open the procedure. The new paragraph 2 of Article L. 626-29 extends the regime to companies that own or control another company, within the meaning of Articles L. 233-1 and L. 233-3, provided that all the companies concerned meet the above-mentioned thresholds. However, at the request of the debtor, the bankruptcy judge may authorize application of the scheme below these thresholds .

The former Article L. 626-30 of the Commercial Code, applicable to the receivership by reference from Article L. 631-19, identified two categories of creditors: credit institutions  and the main suppliers of goods or services, grouped into two separate committees. Under the terms of Article L. 626-30, I, as amended by the transposition ordinance, the parties assigned are now not only the creditors whose rights are directly affected by the draft plan, but also, and this is a new development, the holders of the capital, consisting of the members of the extraordinary general assembly or the shareholders' assembly, the special assemblies referred to in Articles L. 225-99 and L. 228-35-6 and the general assemblies of the masses referred to in Article L. 228-103, if their stake in the debtor's capital, the articles of association or their rights are modified by the draft plan. Whereas there were only two committees before the Ordinance came into force, it is now possible to divide creditors into as many classes as they have distinct economic interests. According to Article L. 626-30, III, the receiver must divide the parties affected into classes representing a sufficient community of economic interests among the previous creditors on the basis of verifiable objective criteria. However, creditors with security interests in the debtor's assets, in respect of their secured claims, and other creditors, must be divided into separate classes, and holders of capital must form one or more classes. The receiver must notify each assigned party by any means that it is a member of a class and must inform it of the arrangements enabling it to communicate by electronic means . The allocation into classes must comply with the subordination agreements entered into prior to the commencement of the procedure, which the parties have brought to the attention of the receiver, at the latest within ten days of receipt of the receiver's notice . Failing this, such subordination agreements are not enforceable against the procedure .

Ord. 2021-1193 of 15 September 2021 amending Book VI of the Commercial Code.

Dir. 2019/1023 of 20 June 2019 on preventive restructuring frameworks, debt forgiveness and discharges, and on measures to be taken to increase the efficiency of restructuring, insolvency and debt forgiveness procedures, OJEU L 172 of 26 June 2019, 18.

Applicable by reference to art. R. 631-37.

See for an application, CA Paris, 11 May 2016, LawLex202100003158JBJ (S).

C. com. R. 626-55, para. 1, applicable to the receivership procedure by reference to art. R. 631-37.

C. com. R. 626-55, para. 3, applicable to the receivership procedure by reference to art. R. 631-37.

C. com. L. 626-30, II, applicable to the receivership procedure by reference to art. L. 631-19.

Bankruptcy Law

563. Composition of the classes of affected parties

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

Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

563. Composition of the classes of affected parties

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

Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

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