Opening of the procedure
Preparation of the petition, demonstration of the forthcoming difficulties, choice of the competent court, appointment of the officers (administrator, creditors' representative).
→ Restructuring · Sub-expertise
Safeguard proceedings (sauvegarde) are the insolvency proceedings available to companies that are not yet in a suspension of payments but face difficulties they cannot overcome. They stay enforcement actions, freeze the liabilities and provide time to build a continuation plan, while leaving the director in charge.
→ What we cover
Preparation of the petition, demonstration of the forthcoming difficulties, choice of the competent court, appointment of the officers (administrator, creditors' representative).
Freezing of liabilities, stay of individual enforcement actions, negotiation with creditors and drafting of the continuation plan over 6 to 12 months, renewable.
Construction of the continuation plan: rescheduling (up to 10 years), possible waivers, debt-to-equity conversion, operational restructuring.
For companies exceeding certain thresholds, formation of classes of affected parties voting on the plan, with cross-class cram-down mechanisms.
Presentation to the court, adoption of the plan, operational implementation, appointment of a plan-execution commissioner to monitor the commitments.
Advice to the director throughout the procedure, protection against liability (management under observation), preparation of strategic decisions requiring the administrator's consent.
→ Our approach
01
Verification of eligibility (difficulties but no suspension of payments), preparation of the petition, opening of the procedure and appointment of the officers.
02
Freezing of liabilities, filing of claims, financial and strategic audit, negotiation of the terms of the plan with the creditors.
03
Construction of the continuation plan, submission to the creditors (class voting for large structures), presentation to the court.
04
Adoption of the plan by judgment, appointment of the execution commissioner, operational implementation and multi-year monitoring.
→ Who we help
A company whose LBO debt becomes unsustainable in the face of a lasting downturn: safeguard to reschedule over 10 years and preserve the operating business.
A company affected by the loss of a client representing a significant share of its turnover: safeguard to gain time, restructure the organisation and rebuild the order book.
Safeguard enabling the restructuring of complex bond debt through the mechanism of classes of affected parties, with cross-class cram-down where necessary.
Procedure opened simultaneously over several entities of a group, with coordination of the plans, treatment of intra-group items and a unified strategy.
→ Q&A
Safeguard is opened before a suspension of payments and on the initiative of the director alone. Judicial reorganisation (redressement judiciaire) intervenes after a suspension of payments (or at the request of a creditor). Safeguard allows the director to keep the initiative and excludes certain procedures (forced disposal).
Yes: safeguard does not entail the divestment of the director, who continues to run the company. A judicial administrator is appointed, but on an assistance or supervisory mission, rarely one of representation. This preservation of control is one of the major strengths of the procedure.
The initial observation period is 6 months, renewable once for 6 months (12 months maximum), with an exceptional further extension possible. The adopted plan may then extend over a maximum duration of 10 years for debt rescheduling.
For companies exceeding certain thresholds, creditors and shareholders are grouped into classes according to their interests. The plan is voted on class by class, with the possibility of cross-class cram-down if certain classes approve it. A mechanism resulting from the transposition of the European Restructuring Directive.
→ Go further
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