Overview The voluntary administration procedure in the Corporations Act was introduced in 1993. Prior to this, the only formal mechanism for a company to compromise with its creditors was by a creditors’ scheme of the arrangement, a process often regarded as costly, time-consuming and cumbersome. The primary objective of voluntary administration is to provide for the business, property and affairs of an insolvent company to be administered in a way that: maximizes the chances of…
The state of health emergency declared by the French law of 23 March 2020 to deal with the COVID-19 epidemic clearly affects the country’s companies. In order to support them in these exceptional circumstances, the government has temporarily adapted the procedures applicable to companies facing financial stress. 1. Crystallization of the state of cessation of payments on 12 March 2020 Order No. 2020-341 of 27 March 2020, adapting the rules relating to the difficulties of…