Upstream preparation
Mandatory prior conciliation to prepare the plan and obtain the support of a majority of creditors. Construction of the classes of affected parties and of the voting strategy.
→ Restructuring · Sub-expertise
Accelerated safeguard (sauvegarde accélérée) is an express procedure that allows a plan prepared upstream to be finalised by imposing the agreement on a minority of recalcitrant creditors. Particularly suited to financial restructurings (bond debt, syndicated debt), it completes the director's toolkit and allows a transaction prepared in conciliation to be wrapped up quickly.
→ What we cover
Mandatory prior conciliation to prepare the plan and obtain the support of a majority of creditors. Construction of the classes of affected parties and of the voting strategy.
Petition for accelerated safeguard during the conciliation, opening within a few days, appointment of the officers and continuation of the effects of the conciliator.
Formation of the classes of affected parties (creditors and equity holders), organisation of the vote and formalisation of the adoption.
Cross-class cram-down mechanism allowing the plan to be imposed even where certain classes refuse it, subject to strict conditions (best interest of creditors).
Procedure governed by short deadlines (generally 2 months, extendable to 4 months), allowing a plan to be finalised in less than a quarter.
Operational execution of the plan, monitoring by an execution commissioner, coordination with the restructured banking and bond documentation.
→ Our approach
01
Opening of a conciliation to prepare the plan, negotiate with the majority creditors and identify any recalcitrant ones.
02
Petition for accelerated safeguard where a majority has been secured but a minority is blocking, opening of the express procedure.
03
Formation of the classes, presentation of the plan, voting within the short deadlines set by law.
04
Adoption of the plan by judgment (with cram-down where necessary), operational implementation and monitoring by the execution commissioner.
→ Who we help
Restructuring plan for a bond issue with a majority of bondholders in agreement: accelerated safeguard to impose the plan on the blocking minority.
Restructuring of complex LBO debt (senior, mezzanine, vendor loan) through classes of affected parties, with cross-class cram-down on the minority classes.
Fast procedure targeting only the financial creditors, without interrupting relations with suppliers, employees and clients.
A conciliation resulting in an agreement that is not unanimous: accelerated safeguard allows the restructuring to be completed on the basis of the plan already prepared.
→ Q&A
Yes, it is an eligibility condition: accelerated safeguard must be preceded by a conciliation, which serves to prepare the plan and mobilise the support of the majority creditors. Without this preparation, the express procedure is not available.
Very short: 2 months, renewable once (4 months maximum). This is one of the main strengths of the mechanism: finalising a restructuring within a quarter, whereas a classic safeguard can last 12 to 18 months.
The classes may group together financial creditors, commercial creditors and equity holders. Depending on the thresholds and the strategy, the procedure may affect only the financial liabilities or include other stakeholders. A preliminary analysis is essential.
A mechanism allowing the plan to be imposed even if certain classes have refused it, provided that other classes approve it and that the plan satisfies a best interest of creditors test. Derived from the European Restructuring Directive.
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