--- title: "Insolvency and Restructuring" id: "2048" type: "expertise" slug: "insolvency-and-restructuring" published_at: "2026-01-26T10:15:05+00:00" modified_at: "2026-07-28T15:18:44+00:00" url: "https://www.august-debouzy.com/en/expertise/insolvency-and-restructuring/" markdown_url: "https://www.august-debouzy.com/en/expertise/insolvency-and-restructuring.md" excerpt: "Protecting your interests in times of crisis and business turnaround Insolvency and restructuring proceedings involve exceptional financial, operational, and human stakes. Between preserving business activity, restructuring liabilities, and safeguarding legal rights, each decision may determine whether a company survives or..." taxonomy_language: - "English" taxonomy_post_translations: - "pll_69773ea964b3a" taxonomy_tax_expertise: - "Insolvency and Restructuring" taxonomy_tax_famille_expertise: - "Dispute Resolution" --- ## Protecting your interests *in times of crisis and business turnaround* Insolvency and restructuring proceedings involve exceptional financial, operational, and human stakes. Between preserving business activity, restructuring liabilities, and safeguarding legal rights, each decision may determine whether a company survives or ceases operations. We act at every stage, including preventive proceedings such as ad hoc mandates and conciliation, formal insolvency proceedings such as safeguard proceedings, judicial reorganization, and liquidation, as well as post-proceeding litigation. Our approach combines responsiveness, technical mastery of restructuring mechanisms, and a deep understanding of economic realities. We represent debtors, creditors, shareholders, executives, and acquirers before all commercial and civil courts. Each matter is handled through a tailored strategy designed to preserve value and secure legal positions. ## *our*Capabilities ### (01) Preventive Proceedings We advise executives and creditors in out-of-court restructuring proceedings. An ad hoc mandate allows negotiations with a limited number of creditors, while conciliation enables the negotiation of a court-approved agreement. Our work includes analyzing financial situations, structuring repayment plans, negotiating with creditors, and formalizing agreements. Each structure is designed to preserve confidentiality, avoid the opening of formal insolvency proceedings, and maintain business continuity. ### (02) Safeguard and Judicial Reorganization We assist debtors and creditors in safeguard and judicial reorganization proceedings. For debtors, we manage the opening of proceedings, prepare continuation or asset sale plans, and negotiate with creditors and court-appointed officers. For creditors, we file and challenge claims, participate in creditor committees, and defend their rights in the development of restructuring plans. Our command of procedural timelines, formal requirements, and the balance of interests among stakeholders enables us to protect our clients’ positions effectively. ### (03) Liquidation and Asset Sales We act in judicial liquidation proceedings for debtors, creditors, and prospective buyers. We secure the transfer of standalone assets or business units, negotiate acquisition terms, and challenge decisions of court-appointed officers when necessary. For creditors, we protect their rights, contest fraudulent claims, and monitor asset realization processes. Our intervention optimizes recoveries and secures acquisition transactions in a constrained environment. ### (04) Insolvency Litigation We represent clients in disputes arising from insolvency proceedings, including actions for contribution to liabilities, liability for insufficiency of assets, extensions of proceedings, claims disputes, avoidance actions during the suspect period, and actions brought against executives or third parties. We act before commercial, civil, and criminal courts to protect the interests of debtors, creditors, executives, and other stakeholders. Our approach combines procedural and strategic perspectives to safeguard positions and limit exposure. Collective excellence at the service of the *highest standards.* Team [Laurent Cotret ( Partner )](https://www.august-debouzy.com/en/collaborateur/laurent-cotret/) [Clément Quernin ( Counsel )](https://www.august-debouzy.com/en/collaborateur/clement-quernin/) [Mehdi Abdelouahab ( Senior Associate )](https://www.august-debouzy.com/en/collaborateur/mehdi-abdelouahab/) [Sonia Allouane ( Associate )](https://www.august-debouzy.com/en/collaborateur/sonia-allouane/) [Ulysse Brasier ( Associate )](https://www.august-debouzy.com/en/collaborateur/ulysse-brasier/) [Gilles Jaglin ( Associate )](https://www.august-debouzy.com/en/collaborateur/gilles-jaglin/) [Abel Martin ( Associate )](https://www.august-debouzy.com/en/collaborateur/abel-martin/) [Aurélien Mittelette ( Associate )](https://www.august-debouzy.com/en/collaborateur/aurelien-mittelette/) Précédent Suivant ## Contact Us *Rankings* & Recognitions m - (01)Legal 500 2026 – France Insolvency - (02)Chambers and Partners 2025 – Global Restructuring/Insolvency - (03)Legal 500 2025 – Global Insolvency [More distinctions](https://www.august-debouzy.com/en/distinctions/?search_tax-expertise%5B%5D=insolvency-and-restructuring) ## *Latest* News [02/09/25 Deal 2 min August Debouzy Advises Keller Williams France on the Court Approval of Its Safeguard Plan August Debouzy advised Keller Williams France on the successful court approval of its safeguard plan, enabling the company to restructure €17.8 million in debt and continue its growth in the French real estate market.](https://www.august-debouzy.com/en/deal/august-debouzy-advises-keller-williams-france-on-the-court-approval-of-its-safeguard-plan/) [24/07/25 Deal 2 min August Debouzy advised the Hôtels de Paris group on its exit from judicial reorganisation proceedings and the approval of its continuation plan The continuation plan for Les Hôtels de Paris was approved by the Paris Commercial Court on 11 July 2025, marking a key milestone in the group’s restructuring process.](https://www.august-debouzy.com/en/deal/august-debouzy-advised-the-hotels-de-paris-group-on-its-exit-from-judicial-reorganisation-proceedings-and-the-approval-of-its-continuation-plan/) [02/07/25 Deal 3 min August Debouzy Advises Réside Études on Its Comprehensive Restructuring August Debouzy has advised Réside Études Group in connection with its comprehensive restructuring plan, following financial difficulties encountered by sev](https://www.august-debouzy.com/en/deal/august-debouzy-advises-reside-etudes-on-its-comprehensive-restructuring/) [24/06/25 Deal 3 min August Debouzy Advises FC Girondins de Bordeaux on Landmark Financial Restructuring August Debouzy has advised FC Girondins de Bordeaux and its holding company, La Dynamie, in structuring and securing court approval of their financial rest](https://www.august-debouzy.com/en/deal/august-debouzy-advises-fc-girondins-de-bordeaux-on-landmark-financial-restructuring/) [09/05/25 Deal 2 min August Debouzy advised on the acquisition of Geismar, a key player in the railway industry, by a consortium led by Sandton Capital Partners, Verdoso, and MegaRock August Debouzy acted as legal counsel to the companies of Geismar, a French industrial group with international reach, specializing in the design and manufacture of equipment for the construction, maintenance, and modernization of railway networks. This acquisition, overseen by the Economic Activities Court of Nanterre, marks the culmination of several years of strategic transformation following economic and financial challenges and difficulties.](https://www.august-debouzy.com/en/deal/august-debouzy-advised-on-the-acquisition-of-geismar-a-key-player-in-the-railway-industry-by-a-consortium-led-by-sandton-capital-partners-verdoso-and-megarock/) 01 05 Précédent Suivant [Find our latest news](https://www.august-debouzy.com/en/hub/) News ## *FAQ* ### (01) When should a company trigger an amicable or collective insolvency procedure? Article L. 631-1 of the French Commercial Code defines the state of cessation of payments as the inability to meet due liabilities with available assets. Any director who identifies this state has forty-five days to file a declaration with the competent court, failing which they may face personal liability. Upstream of cessation of payments, preventive procedures (mandat ad hoc, conciliation, safeguard) allow action to be taken while the company is still solvent. We advise directors on choosing the appropriate mechanism for their situation and assist in the rapid implementation of the most protective procedure. ### (02) How can you negotiate a continuation or disposal plan within collective proceedings? Adopting a continuation or disposal plan is the central issue of the observation period. Article L. 626-12 of the French Commercial Code sets the maximum duration of a safeguard or reorganization plan at ten years (fifteen years for farmers). A total or partial sale of the company may be ordered at the end of the observation period in judicial reorganization if no continuation plan is adopted. We advise debtors, creditors and prospective acquirers on preparing, negotiating and obtaining court approval for plans, coordinating the economic, social and legal dimensions of each case. ### (03) How can you protect creditors’ interests in collective insolvency proceedings? Representing creditors (suppliers, banks, bondholders, shareholders) in insolvency proceedings requires constant vigilance over deadlines and mechanisms for declaring, verifying and contesting claims. Article L. 622-24 of the French Commercial Code sets the claim filing deadline at two months from publication of the opening judgment in the BODACC. A claim not filed within this period is in principle unenforceable against the proceedings. We assist creditors in declaring and verifying their claims, challenging decisions of the judicial representative and enforcing available security interests and guarantees. ### (04) What personal liabilities do directors face in the event of company difficulties? The opening of collective proceedings exposes directors to personal liability claims. Article L. 651-2 of the French Commercial Code allows action for asset deficiency against a director whose management fault contributed to the shortfall identified upon judicial liquidation. Furthermore, Article L. 653-8 provides for personal bankruptcy for directors who have committed certain serious faults (asset misappropriation, fictitious accounting, abusive continuation of loss-making operations). We defend directors facing these actions and advise them on preventing personal liability risks. ### (05) Why choose August Debouzy as your law firm for insolvency and collective proceedings? We advise and represent all stakeholders: distressed directors, debtors seeking to restructure, creditors seeking to protect their interests, prospective acquirers and distressed M&A investors. Our expertise covers preventive procedures (mandat ad hoc, conciliation), collective proceedings (safeguard, judicial reorganization, liquidation), director liability and distressed M&A. Working with our financing, M&A and employment law teams, we deliver a comprehensive, swift and operationally focused approach adapted to the time constraints that characterize these situations.