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In a liquidation case, the Court of Cassation has sent two interlocutory questions to the European Court of Justice. The case revolved around the principle of the intermingling of assets, which provides that opened insolvency proceedings may be extended to other parties if their assets are intermingled with those of the debtor.
The Cour de Cassation recently handed down its decision in the Coeur Défense case, which quashed last year's decision by the Paris Court of Appeal. The consequences of this decision are far-reaching. The position taken by the Cour de Cassation opens the floodgates for appeals by creditors against judgments on opening safeguard proceedings.
The recently published Banking and Financial Law changes French law with regard to insolvency proceedings. The reform will apply to voluntary arrangement, safeguard and judicial reorganisation proceedings. It represents real progress for companies in distress, allowing them to reach an agreement for financing their debts while maintaining supplier confidence.
A recent case shows that a pre-pack can be implemented under French law, but only under specific circumstances. More generally, it demonstrates that French law offers a wide range of possibilities which enable businesses to restructure and find their way back to solvency.
Since the fiducie was introduced, a number of amendments have altered the applicable legal framework, both for the fiducie in general and in respect of contracts for the fiducie as security. Certain changes apply, particularly in the context of insolvency proceedings.
In reaction to apparent failures and in light of the global economic crisis, the legislature and regulatory authorities have proposed further insolvency law reforms. It is hoped that companies will gradually gain confidence in the new procedures and avail themselves of the possibilities offered by the law with a view to the continuation of their business.