French Insolvency Law - Leaseback Issues
Opening of an insolvency procedure against your French debtor: What should you do? The process of lodging a claim or proof of debt with the competent official of the insolvency proceedings (Liquidator or Creditors' Representative) is called 'Déclaration de créance'.
Until a creditor has filed its proof of debt, any discussion with this official is, in most cases, ineffective.
'Déclaration de créance' Claims must be filed either with the creditor's representative, whose duty is to represent the interests of the creditors and list all claims, or with the Liquidator if the company is already in liquidation.
The court-appointed cditors' representative has an obligation to contact all known creditors within 15 days from the date of the judgment.
Proofs of Debt must be very carefully drafted.
Some essential points to consider are as follows: - Drafting the proof of debt in French - Mentioning whether the debt is a preferential one or not; - The legal interest on unpaid sums should be included.
Interest stops accruing at the date of the commencement Receivership Order; - All sums must be converted in Euro with the exchange rate applicable at the date of the Order; - The 'Declaration de Créance' is to be signed by a legal representative of the foreign creditor, or anyone holding a special power of attorney, or the creditor's solicitor; - Above his/her signature, the creditor or its legal representative must handwrite a special Statement of Truth; - All supporting documentation evidencing the claim should be listed on a document called 'Bordereau de documents justificatifs' Debts incurred before insolvency must be declared except employees' wages or maintenance payments.
Debts incurred after the onset of the insolvency should be declared too if they cannot be paid when due.
The time-limit for filing claims is two months from the date the Receivership Order is published.
Such publishing normally takes place around three weeks following the date of the Order.
The time limit is extended to 4 months for overseas-based creditors.
Caims are time-barred if not made within the time limit unless the insolvency judge rules otherwise.
All declared debts are verified by the court's agent and the debtor before being submitted to the Judge for approval.
Creditors receive a certificate confirming that the debts are final.
Subject to admission of their claim, creditors have a right to a share in the net proceeds, if any, at the end of the insolvency procedure.
Until a creditor has filed its proof of debt, any discussion with this official is, in most cases, ineffective.
'Déclaration de créance' Claims must be filed either with the creditor's representative, whose duty is to represent the interests of the creditors and list all claims, or with the Liquidator if the company is already in liquidation.
The court-appointed cditors' representative has an obligation to contact all known creditors within 15 days from the date of the judgment.
Proofs of Debt must be very carefully drafted.
Some essential points to consider are as follows: - Drafting the proof of debt in French - Mentioning whether the debt is a preferential one or not; - The legal interest on unpaid sums should be included.
Interest stops accruing at the date of the commencement Receivership Order; - All sums must be converted in Euro with the exchange rate applicable at the date of the Order; - The 'Declaration de Créance' is to be signed by a legal representative of the foreign creditor, or anyone holding a special power of attorney, or the creditor's solicitor; - Above his/her signature, the creditor or its legal representative must handwrite a special Statement of Truth; - All supporting documentation evidencing the claim should be listed on a document called 'Bordereau de documents justificatifs' Debts incurred before insolvency must be declared except employees' wages or maintenance payments.
Debts incurred after the onset of the insolvency should be declared too if they cannot be paid when due.
The time-limit for filing claims is two months from the date the Receivership Order is published.
Such publishing normally takes place around three weeks following the date of the Order.
The time limit is extended to 4 months for overseas-based creditors.
Caims are time-barred if not made within the time limit unless the insolvency judge rules otherwise.
All declared debts are verified by the court's agent and the debtor before being submitted to the Judge for approval.
Creditors receive a certificate confirming that the debts are final.
Subject to admission of their claim, creditors have a right to a share in the net proceeds, if any, at the end of the insolvency procedure.