Bankruptcy Law

A substantial change in the objectives or means of the plan may only be decided by the court, at the request of the debtor and on the basis of a report by the commissioner for the enforcement of the plan . Where the debtor's situation allows the plan to be substantially modified for the benefit of creditors, the commissioner for the enforcement of the plan may refer the matter to the court. An ext …

Adaptation of the plan's objectives and resources

A substantial change in the objectives or means of the plan may only be decided by the court, at the request of the debtor and on the basis of a report by the commissioner for the enforcement of the plan . Where the debtor's situation allows the plan to be substantially modified for the benefit of creditors, the commissioner for the enforcement of the plan may refer the matter to the court. An extension of the plan, which does not constitute a substantial modification of its objectives or means, may be requested by a commissioner for the enforcement of the plan .

In all cases, the application must be made by petition . An application for a radical modification of a plan that is allegedly intended to provide cash to the group to which the debtor belongs, when the debtor already has sufficient funds to pay the creditors, must be rejected if the reason given is not inherent in the debtor . Similarly, an appeal lodged by the debtor's mortgage creditor against a judgment authorizing the transfer of items not included in the initial plan, enabling the transferee to acquire all of the company's industrial assets and increase the number of jobs maintained, is inadmissible where it makes a substantial change to the objectives and means of the disposal plan .

Where the request for a substantial amendment to the plan relates to the arrangements for discharging the liabilities, the creditors concerned are consulted. In accordance with Article R. 626-45(3) of the Commercial Code , the court registrar informs them by registered letter with acknowledgement of receipt. They have twenty-one days from receipt of this information to submit their observations by registered letter with acknowledgement of receipt to the commissioner for the enforcement of the plan. Since the Ordinance of 15 September 2021 , Article L. 626-26 specifies that failure to respond constitutes acceptance of the proposed changes, except in the case of debt forgiveness or conversion into securities giving or capable of giving access to capital .

Lastly, the court makes its decision after obtaining the opinion of the public prosecutor and hearing or duly summoning the debtor, the commissioner for the enforcement of the plan, the auditors, the representatives of the social and economic committee and any interested party . A shareholder may lodge a third-party objection against a decision to amend the plan if the effect is to reduce the shareholder's voting rights as a result of the entry into the company's capital of a third party related to the other shareholders, with whom the shareholder is in conflict .

C. com. L. 626-26, para. 1, applicable to the receivership procedure by reference to art. L. 631-19.

Cass. com., 23 November 2004, LawLex202200004676JBJ (RJ).

C. com. R. 626-45, para. 1, applicable by reference from art. R. 631-35.

CA Paris, 28 November 2017, LawLex202100001829JBJ (S).

Cass. com., 8 June 1993, LawLex202100001802JBJ (RJ).

Applicable by reference to art. R. 631-35.

Ordinance 2021-1193 of 15 September 2021 concerning amendments to Book VI of the Commercial Code.

C. com. L. 626-26, para. 2, applicable by reference from art. L. 631-19. See, under the old law, Cass. com. 29 September 2021, LawLex202100005435JBJ (RJ). See for anticipated applications of the rule, CA Paris, 2 September 2021, LawLex20220000000485JBJ (RJ) ; CA Saint-Denis de la Réunion, 13 April 2021, LawLex202200006044JBJ (S).

C. com. L. 626-26, para. 4, applicable by reference from art. L. 631-19.

CA Versailles, 18 January 2022, LawLex202200004293JBJ (RJ).

Bankruptcy Law

579. Adaptation of the plan's objectives and resources

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579. Adaptation of the plan's objectives and resources

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

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