TITLE IV: Judicial liquidation.
Preliminary chapter: From the opening and unfolding of the
A judicial liquidation procedure is instituted open to any debtor mentioned in Article L.
640-2 in suspension of payments and the adjustment of which is manifestly impossible.
The judicial liquidation procedure is intended to terminate the activity of the company or to
realize the debtor’s assets through a global or separate assignment of his rights and assets.
The judicial liquidation procedure is applicable to any trader, to any person
registered in the trades register, to any farmer, to any other natural person exercising
an independent professional activity including a liberal profession subject to a statute
legislative or regulatory or whose title is protected, as well as to any legal person
A new judicial liquidation procedure cannot be opened with regard to a person
subject to such a procedure as long as it has not been closed.
The judicial liquidation procedure is also open to the persons mentioned in the first
paragraph of Article L. 640-2 after the end of their professional activity, if all or part of their
liability comes from the latter.
When a trader, a person registered in the trade register, a farmer or
any other natural person exercising a self-employed professional activity, including a
liberal profession subject to a legislative or regulatory status or whose title is protected, is
deceased in suspension of payments, the court may be seized, within one year from the date of
date of death, on the summons of a creditor, whatever the nature of his claim, or on request
of the public prosecutor. The court may also seize it ex officio within the same time limit. He can be
seized without delay by any heir of the debtor.
The opening of this procedure must be requested by the debtor at the latest within
forty-five days following the cessation of payments, if he has not within this period requested
the opening of a conciliation procedure.
If the conciliation procedure fails, if the court, ruling under the second
paragraph of Article L. 631-4, notes that the conditions mentioned in Article L. 640-1 are met,
he opens judicial liquidation proceedings.
When there is no ongoing conciliation procedure, the court may also seize ex officio
or be seized at the request of the public prosecutor for the purposes of opening the liquidation procedure
Subject to this same reservation, the procedure can also be opened on the summons of a creditor, which
whatever the nature of its claim. However, when the debtor has ceased his professional activity,
this assignment must take place within one year from:
1 ° Cancellation from the trade and companies register. If it is a legal person, the deadline
runs from the delisting following the publication of the closing of
2 ° The cessation of the activity, in the case of a person registered in the trades directory, of a
farmer or a natural person exercising an independent professional activity, including
including a liberal profession subject to a legislative or regulatory status or whose title is
3 ° The publication of the completion of the liquidation, in the case of a legal person not subject to
In addition, proceedings cannot be opened with regard to a debtor carrying on an agricultural activity who
is not incorporated in the form of a commercial company unless the president of the tribunal de grande
body was seized, prior to the summons, of a request tending to the designation of a
conciliator presented in application of article L. 351-2 of the rural code.
The works council or, failing that, the employee representatives can communicate to the chairman
of the court or to the public prosecutor any fact revealing the cessation of payments of the debtor.
Chapter I: Judgment of judicial liquidation.
- – Articles L. 621-1 and L. 621-2 are applicable to the judicial liquidation proceedings.
- – In the judgment opening the judicial liquidation, the court appoints the judge-commissioner and,
as liquidator, a registered legal representative or a person chosen on the basis of
of the first paragraph of II of Article L. 812-2. The court may, either on a proposal from the
judge-commissioner or at the request of the public prosecutor, either ex officio, replace the
liquidator or add one or more liquidators to him. The debtor or a creditor may request
the judge-commissioner to refer the matter to the court for this purpose.
When the debtor exercises a liberal profession subject to a legislative or regulatory status or
whose title is protected, the professional order or the competent authority to which, where applicable, it is
may seize the public prosecutor for the purposes mentioned in the first paragraph.
An employee representative is appointed under the conditions provided for in the second paragraph of article
- 621-4.It is replaced under the conditions provided for in the fifth paragraph of article L. 621-7.He
performs the mission provided for in article L. 625-2.
The controllers are appointed and exercise their powers under the same conditions as those
provided for in Title II.
III. – When the judicial liquidation is pronounced during the observation period of a
safeguard or receivership procedure, the court appoints the legal representative
as liquidator. However, the court may, by reasoned decision, at the request of
the administrator, a creditor, the debtor or the public prosecutor, to appoint as
liquidator another person under the conditions provided for in Article L. 812-2.
The court may replace the liquidator or add one or more
liquidators according to the rules provided for in II of this article.
When the debtor exercises a liberal profession subject to a legislative or regulatory status or
whose title is protected, the professional order or the competent authority to which, where applicable, it is
may seize the public prosecutor for the purposes mentioned in the first two paragraphs of this III.
- – The date of cessation of payments is set under the conditions provided for in Article L. 631-8.
The liquidator draws up a report on the debtor’s situation within one month of his appointment, unless the
court pronounces judicial liquidation during an observation period. The provisions of
second paragraph of Article L. 621-9 are applicable.
The simplified judicial liquidation procedure provided for in Chapter IV of this Title is
applicable if it appears that the debtor’s assets do not include real estate, that the number
of its employees during the six months preceding the opening of the procedure and that its figure
tax-free business are equal to or lower than the thresholds set by decree of the Council of State.
The judgment opening the judicial liquidation has the same effects as those provided for in the event of
safeguard by the first and fourth paragraphs of Article L. 622-7 and by Articles L. 622-21,
- 622-22, L. 622-28 and L. 622-30.
Creditors declare their claims to the liquidator in accordance with the terms set out in Articles L.
622-24 to L. 622-27 and L. 622-31 to L. 622-33.
The liquidator carries out the liquidation operations at the same time as the verification of the
receivables. He can initiate or continue actions that fall within the competence of the agent.
Unsecured claims are not verified if it appears that the proceeds of the
realization of the asset will be fully absorbed by legal costs and privileged claims, at
unless, in the case of a legal person, there is no need to charge the directors
de jure or de facto all or part of the liabilities in accordance with Articles L. 651-2 and L. 652-1.
The liquidator exercises the missions devolved to the administrator and the judicial representative by the
Articles L. 622-6, L. 622-20, L. 622-22, L. 622-23, L. 624-17, L. 625-3, L. 625-4 and L. 625-8.
For the purposes of carrying out the inventory provided for in Article L. 622-6, the court appoints a
judicial auctioneer, bailiff, notary or sworn commodity broker.
An appraisal of the debtor’s assets is carried out by the persons referred to in the fourth paragraph.
The redundancies carried out by the liquidator in application of the decision pronouncing the
liquidation are subject to the provisions of Articles L. 321-8 and L. 321-9 of the Labor Code.
When the judicial liquidation is pronounced during the period of observation of a procedure
safeguard or receivership, the liquidator proceeds with liquidation operations
at the same time as it eventually completes the verification of debts and establishes the order of
creditors. He continues the actions brought before the judgment of liquidation, either by
the administrator, or by the judicial representative, and can bring actions that fall within the
jurisdiction of the judicial representative.
No relatives or allies up to the fourth degree inclusive of the entrepreneur or managers
if it is a legal person cannot be appointed liquidator.
The liquidator keeps the judge-commissioner, the debtor and the
prosecution of the conduct of operations.
Any sum received by the liquidator in the performance of his duties is immediately paid into
deposit account at the Caisse des Dépôts et Consignations. In the event of delay, the liquidator must, in order to
the sums that he has not paid, an interest the rate of which is equal to the legal rate of interest increased by
- – The judgment which opens or declares the judicial liquidation automatically takes precedence, from its
date, relinquishment for the debtor of the administration and disposal of his property even from
those he has acquired for any reason whatsoever as long as the judicial liquidation is not completed. The
rights and actions of the debtor concerning his assets are exercised throughout the duration of the
judicial liquidation by the liquidator.
However, the debtor can become a civil party in order to establish the culpability of the perpetrator.
of a crime or an offense of which he would be the victim.
The debtor also performs the acts and exercises the rights and actions that are not included
in the mission of the liquidator or administrator when appointed.
- – When the debtor is a legal person, the corporate officers in office at the time of
pronouncement of the judgment of judicial liquidation shall remain so, unless otherwise provided for in the articles of association
or decision of the general assembly. If necessary, a representative can be appointed in their
place and place by order of the president of the court at the request of any interested party, the liquidator or
of the public prosecutor.
The registered office is deemed to be at the domicile of the legal representative of the company or of the agent.
III. – When the debtor is a natural person, he cannot exercise, during the liquidation
judicial, none of the activities mentioned in the first paragraph of article L. 640-2.
The judge-commissioner exercises the powers vested in him by articles L. 621-9, L.
623-2 and L. 631-11, by the first paragraph of article L. 622-13 and the fourth paragraph of article L.
The information held by the public prosecutor is communicated to it in accordance with the rules laid down
in the second paragraph of Article L. 621-8.
The liquidator and the administrator, when appointed, receive from the judge-commissioner all
information useful for the accomplishment of their mission.
Judicial liquidation does not automatically result in the termination of the lease of the buildings assigned to
The liquidator or administrator may continue the lease or assign it under the conditions provided for in the
contract concluded with the lessor with all the rights and obligations attached to it. In case of
assignment of the lease, the provisions of article L. 622-15 are applicable.
If the liquidator or administrator decides not to continue the lease, it is terminated on his
simple request. The termination takes effect on the day of this request.
The lessor may request judicial termination or have the automatic termination of the
lease for causes prior to the judgment of judicial liquidation or, when the latter has been
pronounced after safeguard or receivership proceedings, at the opening judgment
of the procedure that preceded it. He must, if he has not already done so, submit his request within three months
the publication of the judgment of judicial liquidation.
The lessor may also request judicial termination or have the full termination noted.
lease law for failure to pay rents and charges relating to occupancy subsequent to the
judgment of judicial liquidation, under the conditions provided for in the third to fifth paragraphs of
Article L. 622-14.
The lessor’s privilege is determined in accordance with the first three paragraphs of article L.
- – Claims arising regularly after the judgment opening or pronouncing the liquidation
judicial process or, in the latter case, after the judgment opening the safeguard proceedings or
of receivership which preceded it, for the needs of the course of the procedure, for
the needs, if any, of the previous observation period, or because of a service
provided to the debtor, for his professional activity subsequent to one of these judgments, are
paid when due.
- – If they are not paid when due, they are paid by lien before all others
receivables with the exception of those guaranteed by the privilege established in Articles L. 143-10, L.
143-11, L. 742-6 and L. 751-15 of the Labor Code, those which are guaranteed by the privilege of
legal costs, those which are guaranteed by the privilege established by article L. 611-11 of this
code and those which are guaranteed by real estate securities or by movable securities
special agreements with a right of retention or constituted in application of Chapter V of Title II of
III. – Their payment is made in the following order:
1 ° Salary claims the amount of which has not been advanced in application of Articles L.
143-11-1 to L. 143-11-3 of the labor code;
2 ° Legal costs;
3 ° Loans granted as well as debts resulting from the continued performance of contracts
course in accordance with the provisions of article L. 622-13 of this code and of which the co-contractor
agrees to receive a deferred payment; these loans and payment terms are authorized by the
judge-commissioner to the extent necessary for the pursuit of the activity and are advertised.
In the event of termination of a regularly continued contract, compensation and penalties are excluded.
the benefit of this article;
4 ° The sums the amount of which has been advanced in application of 3 ° of article L. 143-11-1 of the
5 ° Other claims, according to their rank.
- – Unpaid debts lose the privilege conferred on them by this article if they do not have
been brought to the attention of the legal representative, the administrator when appointed or
the liquidator, within six months from the publication of the opening judgment or
pronouncing the liquidation or, failing that, within one year from that of the judgment stopping
the disposal plan.
The provisions of Chapters IV and V of Title II of this book relating to the determination of the
assets of the debtor and the settlement of debts resulting from the employment contract as well as
provisions of Chapter II of Title III of this book relating to the invalidity of certain acts
apply to the judicial liquidation proceedings.
However, for the application of article L. 625-1, the liquidator summoned before the council of
labor tribunal or, failing that, the plaintiff calls before the labor tribunal the institutions
referred to in Article L. 143-11-4 of the Labor Code.
For the application of article L. 625-3 of this code, the institutions mentioned in article L.
143-11-4 of the labor code are called into question by the liquidator or, failing that, by the employees
applicants, within ten days of the judgment opening the judicial liquidation procedure or
of the judgment pronouncing it. Likewise, the pending proceedings before the industrial tribunal in the
date of the opening judgment are continued in the presence of the administrator, when it has been
designated, or the latter duly called.
During the judicial liquidation proceedings, the judge-commissioner may order that the liquidator
or the administrator, when it has been appointed, or the addressee of the mail addressed to the debtor.
The debtor, previously informed, can attend the opening of the mail. However, a
summons to a court, a notification of decisions or any other letter having a
personal character must be immediately delivered or returned to the debtor.
The judge-commissioner may authorize the liquidator’s access to the e-mail received by the
debtor under conditions determined by decree of the Council of State.
When the debtor carries out an activity for which he is subject to professional secrecy, the
provisions of this article are not applicable.
Chapter II: Realization of the asset.
Section 1: Transfer of the company.
The purpose of the sale of the company is to ensure the maintenance of activities susceptible to exploitation
autonomous, of all or part of the jobs attached to it and to clear the liabilities.
It can be total or partial. In the latter case, it relates to a set of elements
operations which form one or more complete and independent branches of activity.
When a set consists essentially of the right to a rural lease, the court may, under
reserves the rights to compensation of the outgoing lessee and notwithstanding the other provisions of the statute of the
lease, or authorize the lessor, his spouse or one of his descendants to take over the fund for
operate it, either assign the rural lease to another lessee proposed by the lessor or, failing that, to any
buyer whose offer was received under the conditions set out in Articles L. 642-2, L. 642-4 and L.
642-5. The provisions relating to the control of the structures of agricultural holdings are not
applicable. However, when several offers have been collected, the court takes into account the
provisions of 1 ° to 4 ° and 6 ° to 9 ° of article L. 331-3 of the rural code.
When the debtor, a natural person, exercises a liberal profession subject to legislative status
regulatory or whose title is protected, the transfer can only relate to elements
bodily. However, in the case of a public or ministerial officer, the liquidator may exercise the
right of the debtor to present his successor to the Keeper of the Seals, Minister of Justice.
- – When the court considers that the total or partial sale of the company is possible, it
authorizes the continuation of the activity and sets the deadline within which the takeover offers must reach
to the liquidator and to the administrator when appointed.
However, if the offers received in application of Article L. 631-13 meet the conditions
provided for in II of this article and are satisfactory, the court may decide not to
application of the previous paragraph.
- – All offers must be in writing and include the indication:
1 ° The precise description of the goods, rights and contracts included in the offer;
2 ° Activity and funding forecasts;
3 ° The price offered, the terms of payment, the quality of the capital providers and, if
their guarantors. If the offer proposes recourse to the loan, it must specify the
conditions, in particular of duration;
4 ° From the date of completion of the transfer;
5 ° The level and employment prospects justified by the activity in question;
6 ° The guarantees taken out in order to ensure the execution of the offer;
7 ° Forecasts for the disposal of assets during the two years following the disposal;
8 ° The duration of each of the commitments made by the author of the offer.
III. – When the debtor exercises a liberal profession subject to a legislative statute or
regulatory or whose title is protected, the offer must also include an indication of the
professional qualification of the transferee.
- – The liquidator or administrator, when appointed, informs the debtor, the representative
of the employees and the controllers of the content of the offers received. He deposits them at the registry where all interested
can read it.
They are notified, where applicable, to the professional order or to the competent authority whose
- – The offer cannot be or modified, except in a sense more favorable to the objectives mentioned in
first paragraph of Article L. 642-1, nor withdrawn. It binds its author until the court decision
stopping the plan.
In the event of an appeal against the decision stopping the plan, only the transferee remains bound by his offer.
Neither the debtor, nor the de jure or de facto managers of the legal person in compulsory liquidation, nor
the relatives or allies up to the second degree inclusive of these officers or the debtor
natural person, nor the persons having or having had the capacity of controller during the
procedure are not allowed, directly or through an intermediary, to submit an offer. Likewise, it
These persons are prohibited from acquiring, within five years following the transfer, all or part of
property dependent on the liquidation, directly or indirectly, as well as to acquire shares
or equity securities of any company having in its assets, directly or indirectly, all or
part of these assets, as well as securities giving access, within the same period, to the capital
of this company.
However, in the case of an agricultural operation, the court may waive these prohibitions and
authorize the transfer to one of the persons referred to in the first paragraph, with the exception of the controllers.
In other cases, the court, at the request of the public prosecutor, may authorize the assignment to one of the
persons referred to in the first paragraph, with the exception of the controllers, by a special judgment
reasoned, after having requested the opinion of the controllers.
Any act carried out in violation of this article is canceled at the request of any interested party or of the
prosecution, presented within three years from the conclusion of the act. When
the act is subject to publicity, the time limit runs from this.
The liquidator or administrator, when appointed, gives the court all the information
making it possible to verify the seriousness of the offer as well as the third party quality of its author at
meaning of the provisions of article L. 642-3.
It also provides the court with all the information enabling it to assess the conditions for the discharge of the
liabilities, in particular with regard to the offered price, residual assets to be recovered or realized, debts
the period of continued activity and, where applicable, other debts remaining payable by the
After having obtained the opinion of the public prosecutor and having heard or duly called the debtor, the
liquidator, the administrator when appointed, the representatives of the works council or, at
default, staff representatives and controllers, the court accepts the offer which allows in the
best conditions to ensure the most lasting employment attached to the sold unit, the payment
creditors and who offers the best performance guarantees. He decides on one or more plans of
The debates must take place in the presence of the public prosecutor when the proceedings are opened at the
benefit of natural or legal persons whose number of employees or turnover excluding
taxes is greater than a threshold set by decree of the Council of State.
The judgment which fixes the plan makes its provisions applicable to all.
When the plan provides for redundancies for economic reasons, it cannot be stopped by the
court only after the works council or, failing that, the staff representatives have been consulted
under the conditions provided for in Article L. 321-9 of the Labor Code and the administrative authority
competent person informed under the conditions provided for in Article L. 321-8 of the same code. The precise plan
in particular dismissals which must occur within one month after the judgment. In
this period, these redundancies occur upon simple notification of the liquidator, or
the administrator when appointed, subject to the rights of notice provided for by law, the
collective labor agreements or agreements.
A substantial change in the objectives and means of the plan can only be decided by
the court, at the request of the assignee.
The court rules after having heard or duly called the liquidator, the receiver
when appointed, the controllers, representatives of the works council or, failing that,
staff representatives and any interested person and after having obtained the opinion of the public prosecutor.
However, the amount of the sale price as fixed in the judgment stopping the plan cannot
The court determines contracts for the leasing, rental or supply of goods or services
necessary to maintain the activity in view of the observations of the debtor’s co-contracting parties
sent to the liquidator or administrator when appointed.
The judgment adopting the plan entails the assignment of these contracts, even when the assignment is
preceded by the lease-management provided for in article L. 642-13.
These contracts must be performed under the conditions in force on the day the procedure is opened,
notwithstanding any clause to the contrary.
In the event of the transfer of a financial lease contract, the lessee can only exercise the purchase option
case of payment of the sums remaining due within the limit of the value of the property fixed jointly
agreement between the parties or, failing that, by the court on the date of the assignment.
In execution of the plan adopted by the court, the liquidator or the administrator when it has been
designated passes all the acts necessary for the completion of the transfer. Waiting for
the performance of these acts and upon justification of the deposit of the sale price or of a
equivalent guarantee, the court may entrust to the assignee, at his request and under his responsibility,
the management of the transferred company.
When the sale includes a business, no higher bid is allowed.
As long as the transfer price has not been paid in full, the transferee cannot, with the exception of
stocks, alienate or lease-manage the tangible or intangible assets that it has acquired.
However, their total or partial alienation, their use as security, their rental or their
lease-management may be authorized by the court after a report from the liquidator who must
consult the works council or, failing that, the employee representatives. The tribunal
must take into account the guarantees offered by the transferee.
Any substitution of assignee must be authorized by the court in the judgment stopping the
disposal plan, without prejudice to the implementation of the provisions of Article L. 642-6. The author
of the offer selected by the court remains jointly and severally liable for the performance of the commitments it has made.
Any act passed in violation of the preceding paragraphs is canceled at the request of any interested party or
of the public prosecutor, presented within three years from the conclusion of the act.
When the act is subject to publicity, the period starts from this.
The court may attach a clause to the assignment plan making it inalienable, for a period that it
fixed, all or part of the goods sold.
The publicity of this clause is ensured under conditions fixed by a decree in Council of State.
Any act passed in violation of the provisions of the first paragraph is canceled at the request of any
interested party or the public prosecutor, presented within three years from the conclusion of
the act. When the act is subject to publicity, the period starts from this.
The transferee reports to the liquidator on the application of the provisions provided for in the
If the assignee does not perform his obligations, the court may, at the request of the public prosecutor
on the one hand, the liquidator, a creditor, any interested party or ex officio, after having obtained the opinion of the
public prosecutor, on the other hand, pronounce the resolution of the plan without prejudice to damage and
The court may pronounce the resolution or termination of acts passed in execution of the plan
resolved. The price paid by the assignee remains acquired.
When the assignment relates to assets encumbered by a special lien, pledge or
mortgage, a share of the price is allocated by the court to each of these goods for the
distribution of the price and the exercise of the preferential right.
The payment of the sale price is an obstacle to the exercise against the assignee of the rights of the
creditors registered on these assets.
Until full payment of the price which includes the purging of registrations encumbering the goods included
in the assignment, creditors benefiting from a resale right can only exercise it in the event of
alienation of the property transferred by the transferee.
However, the burden of special real estate and movable securities guaranteeing reimbursement
a loan granted to the company to enable it to finance an asset to which these relate
collateral is transferred to the assignee. The latter is then required to pay into the hands of the creditor.
the deadlines agreed with him and which remain due from the transfer of the property or, in case
of lease-management, of the enjoyment of the property to which the guarantee relates. It can be waived
provisions of this paragraph by agreement between the assignee and the creditors holding the securities.
By the judgment which fixes the plan of transfer, the court can authorize the conclusion of a contract of
lease management, even in the presence of any contrary clause, in particular in the lease of
the building, for the benefit of the person who presented the acquisition offer allowing in the
better conditions to ensure the most lasting employment and payment of creditors.
The court rules after having heard or duly called the liquidator, the receiver
when appointed, the controllers, representatives of the works council or, failing that,
staff representatives and any interested person and after having obtained the opinion of the public prosecutor.
The provisions of Articles L. 144-3, L. 144-4 and L. 144-7 on lease management are not
In the event of a management lease, the company must be effectively sold within two years of the judgment.
who stops the plan.
The liquidator can be communicated by the tenant-manager all the documents and information
useful to its mission. He reports to the court of any infringement of the elements taken into account.
lease-management as well as the non-performance of the obligations incumbent on the tenant-manager.
The court, ex officio or at the request of the liquidator or the public prosecutor, may order the
termination of the lease-management contract and termination of the plan.
If the tenant-manager does not fulfill his obligation to acquire under the conditions and deadlines set by
the plan, the court, ex officio or at the request of the liquidator or the public prosecutor, orders the
termination of the lease-management contract and termination of the plan without prejudice to any damage
However, when the tenant-manager justifies that he cannot acquire under the conditions initially
planned for a cause that is not attributable to him, he may ask the court to modify these
conditions, except with regard to the amount of the price and the deadline provided for in Article L. 642-15. The
court rules before the expiry of the rental contract and after obtaining the opinion of the ministry
public and heard or duly called the liquidator, the administrator when appointed, the
controllers, representatives of the works council or, failing that, employee representatives and any
Section 2: Transfer of the debtor’s assets.
The sales of buildings take place in accordance with the prescribed forms in terms of foreclosure.
However, the judge-commissioner sets, after having collected the observations of the controllers, the
debtor and liquidator heard or duly summoned, the initial price and the essential conditions of
the sale and determines the terms of advertising.
When a foreclosure procedure initiated before the opening of the foreclosure procedure
safeguard, reorganization or judicial liquidation has been suspended by the effect of this
last, the liquidator can be subrogated in the rights of the seizing creditor for the acts that
the latter carried out, which are deemed to be carried out on behalf of the liquidator who proceeds to the
sale of buildings. The foreclosure can then resume its course at the stage where the judgment
opening had suspended it.
Under the same conditions, the judge-commissioner may, if the consistency of the goods, their location
or the offers received are such as to allow an amicable transfer under better conditions,
order the sale by amicable auction on the starting price that he fixes or authorize the sale by mutual agreement
at the prices and conditions it determines. In case of amicable adjudication, it can always be done
The auctions carried out in application of the preceding paragraphs shall entail the purging of
The liquidator distributes the proceeds of the sales and settles the order among the creditors, subject to the
disputes which are brought before the execution judge.
In the event of judicial liquidation of a farmer, the court may, in consideration of the situation
debtor, grant him grace periods, the duration of which he determines for
leave his main dwelling house.
The terms of application of this article are set by decree of the Council of State.
After having collected the observations of the controllers, the judge-commissioner orders the sale to the
public auction or authorizes the sale by mutual agreement of the debtor’s other assets, the latter being
heard or duly called. When the sale takes place by public auction, it is carried out within
conditions provided for, as the case may be, in the second paragraph of Article L. 322-2 or in Articles L. 322-4 or L.
The judge-commissioner may request that the draft amicable sale be submitted to him in order to verify whether
the conditions he set have been met.
The provisions of Article L. 642-3 are applicable to asset disposals carried out in application of
Articles L. 642-18 and L. 642-19. In this case, the powers of the court are exercised by the
When the provisions of Article L. 631-22 have been applied and the debtor cannot
obtain from the court the order of a recovery plan, the provisions of this title are
applicable. The assets not included in the disposal plan are sold under the conditions of the
Section 3: Common provisions.
Any transfer of a business and any realization of assets must be preceded by an advertisement, the
terms and conditions are determined by a decree in the Council of State depending on the size of the company and
the nature of the assets to be sold.
Before any sale or destruction of the debtor’s archives, the liquidator informs the authority
administrative authority responsible for the preservation of archives. This authority has a right to
The destination of the debtor’s archives subject to professional secrecy is determined by the
liquidator in agreement with the professional order or the competent authority to which he reports.
The liquidator may, with the authorization of the bankruptcy judge and the debtor, after hearing or duly
called, compromise and compromise on all disputes that collectively interest the
creditors even on those relating to real estate rights and actions.
If the object of the compromise or transaction is of undetermined value or exceeds jurisdiction
in the last resort of the court, the compromise or the transaction is subject to the approval of the
The liquidator authorized by the judge-commissioner may, by paying the debt, withdraw the assets constituted
pledged by the debtor or the thing retained.
In the absence of withdrawal, the liquidator must, within six months of the judgment of judicial liquidation,
ask the commissioner for authorization to proceed with the realization. The liquidator notifies
authorization to the creditor fifteen days before the realization.
The pledgee, even if he has not yet been admitted, can ask the bankruptcy judge, before the
realization, judicial attribution. If the claim is rejected in whole or in part, he shall return to the
liquidator the property or its value, subject to the admitted amount of its claim.
In the event of sale by the liquidator, the right of retention is automatically transferred to the price.
Any entry made for the preservation of the pledge is canceled at the behest of the
Chapter III: Clearance of liabilities.
Section 1: Settlement of creditors.
The judgment opening or pronouncing judicial liquidation renders unmatured debts payable.
However, when the court authorizes the continuation of the activity on the grounds that the total transfer or
part of the business is possible, unmatured receivables are due on the date of
judgment pronouncing the assignment.
When these claims are expressed in a currency other than that of the place where the
liquidation, they are converted into the currency of this place, according to the exchange rate at the
date of judgment.
Creditors holding a special lien, pledge or mortgage and the Treasury
public for its privileged claims may, once they have declared their claims even if they
are not yet admitted, exercise their right of individual prosecution if the liquidator has not
initiated the liquidation of the encumbered assets within three months from the judgment opening
or pronounces judicial liquidation.
When the court has set a time limit in application of Article L. 642-2, these creditors may
exercise their right of individual prosecution at the end of this period, if no offer including this property
has not been presented.
In the event of the sale of buildings, the provisions of the first, third and fifth paragraphs of
Article L. 642-18 are applicable. When a foreclosure procedure has been initiated before
the opening judgment, the creditor holding a mortgage is exempt, when the resumption of the
individual prosecutions, acts and formalities carried out before this judgment.
The judge-commissioner may, ex officio or at the request of the liquidator or a creditor, order the
provisional payment of a share of a definitively admitted debt.
This provisional payment may be subject to the presentation by its beneficiary of a guarantee
from a credit institution.
In the event that the request for a provision relates to a privileged debt of the administrations
financial institutions, social security bodies, institutions managing the insurance scheme
unemployment provided for by Articles L. 351-3 et seq. of the Labor Code and institutions governed by
Book IX of the Social Security Code, the guarantee provided for in the second paragraph is not due.
If one or more distributions of sums precede the distribution of the price of the buildings, the
privileged creditors and admitted mortgagees contribute to the distributions in proportion to their
After the sale of the buildings and the final settlement of the order between the mortgage creditors
and privileged, those among them who come in useful rank on the price of the buildings for the totality
of their debt receive the amount of their mortgage collocation only after the deduction of
are received by them.
The amounts thus deducted benefit unsecured creditors.
The rights of mortgage creditors who are partially collocated on the distribution of the price
buildings are settled according to the amount that remains due to them after the real estate collocation.
The excess of dividends they received in previous distributions over the
dividend calculated after collocation is withheld from the amount of their mortgage collocation and is
included in the sums to be distributed to unsecured creditors.
The privileged or mortgage creditors, not satisfied on the price of the buildings, compete with
unsecured creditors for what is still due to them.
Subject to the third paragraph of article L. 642-25, the provisions of articles L. 643-4 to L.
643-6 apply to creditors who are beneficiaries of a special movable security.
The amount of the assets, excluding the costs and expenses of judicial liquidation, subsidies
granted to the head of the company or managers or their families and sums paid to
privileged creditors, is distributed among all creditors to the marc the franc of their claims
The portion corresponding to debts on the admission of which it would not have been ruled
definitively and, in particular, the remuneration of the corporate officers as long as it has not been
ruled on their case, is put in reserve.
Section 2: Closing of judicial liquidation operations.
In the judgment opening or pronouncing judicial liquidation, the court sets the time limit at the end of
from which the closure of the proceedings will have to be considered. If the closure cannot be pronounced at the end of
of this period, the court may extend the term by a reasoned decision.
When there are no more liabilities due or the liquidator has sufficient sums to
pay off creditors, or when the continuation of judicial liquidation operations is
made impossible due to insufficient assets, the closure of the judicial liquidation is
pronounced by the court, the debtor heard or duly called.
The court is seized at any time by the liquidator, the debtor or the public prosecutor. It can be
seize automatically. At the expiration of a period of two years from the judgment of judicial liquidation,
any creditor may also apply to the court for the purpose of closing the proceedings.
In the event of a disposal plan, the court only declares the closure of the proceedings after having noted
compliance with its obligations by the transferee.
The liquidator carries out the rendering of the accounts. He is responsible for the documents that have been sent to him
handed over during the procedure for five years from this surrender.
- – The judgment closing judicial liquidation for insufficient assets does not allow recovery
to creditors the individual exercise of their actions against the debtor, unless the claim results from:
1 ° A criminal conviction of the debtor;
2 ° Of rights attached to the person of the creditor.
- – However, the surety or the co-obligated party who paid instead of the debtor may sue
III. – Creditors recover their right of individual action in the following cases:
1 ° The personal bankruptcy of the debtor has been declared;
2 ° The debtor has been found guilty of bankruptcy;
3 ° The debtor or a legal person of which he has been the manager has been subject to a
previous judicial liquidation closed for insufficient assets less than five years before
the opening of that to which it is subjected;
4 ° The proceedings were opened as territorial proceedings within the meaning of paragraph 2 of Article
3 of Council Regulation (EC) No 1346/2000 of 29 May 2000 on insolvency proceedings.
- – In addition, in the event of fraud against one or more creditors, the court authorizes the
resumption of individual actions of any creditor against the debtor. The court rules during
the closure of the procedure after having heard or duly called the debtor, the liquidator and the
controllers. It can rule after this, at the request of any interested party, within
- – Creditors who recover the individual exercise of their actions in application of this
article may, if their claims have been admitted, obtain an enforceable title by order of the
president of the tribunal or, if their claims have not been verified, implement it within the
common law conditions.
The closure of the judicial liquidation suspends the effects of the measure prohibiting the issuance of
checks, of which the debtor is the subject under article 65-3 of the decree of October 30, 1935 unifying the
law relating to checks and payment cards, implemented on the occasion of rejection
a check issued before the judgment opening the procedure.
If the creditors recover their right of individual action, the prohibition measure resumes
effective from the issuance of the writ of execution referred to in the last paragraph of Article L. 643-11.
If the judicial liquidation is closed for insufficient assets and it appears that
assets have not been realized or actions in the interest of creditors have not been
initiated during the course of the procedure, it can be resumed.
The court is seized by the liquidator previously appointed, by the public prosecutor or by any
interested creditor. It can also be seized ex officio. If seized by a creditor, the latter must
justify having consigned to the court office the funds necessary to cover the costs of the operations. The
amount of the recorded costs is reimbursed to him in priority over the sums recovered following the
resumption of proceedings.
If the debtor’s assets consist of a sum of money, the procedure provided for in Chapter IV of the
this title is of applicable law.
Chapter IV: Simplified judicial liquidation.
The simplified judicial liquidation procedure is subject to the rules of judicial liquidation,
subject to the provisions of this chapter.
By way of derogation from the provisions of Article L. 642-19, when the court decides on the application of
this chapter, it determines the assets of the debtor that may be the subject of a sale by mutual agreement. The
liquidator does so within three months of the publication of this judgment.
At the end of this period, the remaining goods are sold by public auction.
By way of derogation from the provisions of Article L. 641-4, only the
receivables likely to rank useful in the distributions and receivables resulting from a
At the end of the procedure of verification and admission of these debts and of the realization of the goods,
the liquidator draws up a distribution plan that he files at the clerk’s office where any interested party can take it
knowledge and which is the subject of a publicity measure.
Any interested party can contest the distribution plan before the bankruptcy judge within a fixed period.
by decree of the Council of State.
The judge-commissioner rules on disputes by means of a decision which is the subject of a
publicity and notification to interested creditors. An appeal can be lodged within a
set by decree in the Council of State.
The liquidator proceeds with the distribution in accordance with the plan or the decision rendered.
At the latest one year after the opening of the proceedings, the court declares the liquidation closed
judicial, the debtor heard or duly called.
He may, by a specially reasoned judgment, extend the procedure for a period which cannot
exceed three months.
At any time, the court may decide, by a specially reasoned judgment, not to
application of the exemptions provided for in this chapter.
TITLE V: Responsibilities and sanctions.
Creditors cannot be held responsible for damages suffered as a result of the contests.
granted, except in cases of fraud, serious interference in the management of the debtor or if the
guarantees taken in return for these contributions are disproportionate to them.
In the event that the liability of a creditor is recognized, the guarantees taken in return for
its contests are void.
Chapter I: Liability for insufficient assets.
The provisions of this chapter and of chapter II of this title are applicable to the directors
of a private law legal person subject to bankruptcy proceedings, as well as to persons
physical permanent representatives of these corporate executives.
When the resolution of a safeguard or receivership plan or the liquidation
court of a legal person reveals a lack of assets, the court may, in the event of
for lack of management that contributed to this lack of assets, decide that the debts of the person
moral will be supported, in whole or in part, by all de jure or de facto managers or by certain
of them, having contributed to the mismanagement. In the event of multiple directors, the court may,
by reasoned decision, declare them jointly and severally liable.
The action is prescribed by three years from the judgment pronouncing the judicial liquidation or the
The sums paid by the directors in application of paragraph 1 enter into the assets of the
debtor. These sums are distributed among all the creditors of the marc le franc.
In the case provided for in article L. 651-2, the court is referred to the court by the legal representative, the liquidator
or the public prosecutor.
In the collective interest of creditors, the court may also be seized by the majority of
creditors appointed as controllers when the legal representative with standing does not have
initiated the actions provided for in the same article, after a formal notice remained unanswered in a
deadline and conditions set by decree of the Council of State.
In the case referred to in the first paragraph, the judge-commissioner may not sit in the formation of
judgment, nor participate in deliberation.
The legal costs to which the manager was convicted are paid in priority over the sums which
are paid to cover the liabilities.
For the application of the provisions of Article L. 651-2, ex officio or at the request of one of the
persons mentioned in Article L. 651-3, the president of the court may instruct the
judge-commissioner or, failing that, a member of the court he designates to obtain, notwithstanding any
contrary legislative provision, communication of any document or information on the situation
patrimonial of directors and permanent representatives of directors of legal entities
mentioned in Article L. 651-1 on the part of administrations and public bodies,
provident and social security organizations and credit institutions.
The president of the tribunal may, under the same conditions, order any useful precautionary measure
with regard to the property of the managers or their representatives referred to in the preceding paragraph.
The provisions of this article are also applicable to members or associates.
of the legal person in safeguard, reorganization or judicial liquidation proceedings,
when they are jointly and severally liable for its debts.
Chapter II: From obligation to social debts.
During judicial liquidation proceedings, the court may decide to charge
one of the de jure or de facto directors of a legal person all or part of the debts of
the latter when it is established, against this manager, that one of the following faults has
contributed to the suspension of payments:
1 ° To have disposed of the property of the legal person as well as his own;
2 ° Under cover of the legal person masking its actions, having carried out acts of
trading in personal interest;
3 ° Have made use of the property or credit of the legal person contrary to the interest of the latter
for personal purposes or to favor another legal person or company in which he was
interested directly or indirectly;
4 ° To have pursued abusively, in a personal interest, a loss-making operation which does not
could lead only to the cessation of payments of the legal person;
5 ° Having embezzled or concealed all or part of the assets or fraudulently increased the liabilities of the
In the cases referred to in this article, the provisions of article L.
In the event of multiple responsible officers, the court takes into account the fault of each for
determine the share of social debts charged to it. By reasoned decision, he can declare them
jointly and severally liable.
The sums recovered are allocated to the compensation of creditors according to the order of their
The action is prescribed by three years from the judgment pronouncing the judicial liquidation.
The provisions of Articles L. 651-3 and L. 651-4 are applicable to the action provided for in this
Chapter III: Personal bankruptcy and other measures
- – When a judicial reorganization or judicial liquidation procedure is opened, the
provisions of this chapter are applicable:
1 ° To natural persons exercising the profession of trader, farmer or registered
to the directory of trades and to any other natural person exercising a professional activity
independent including a liberal profession subject to a legislative or regulatory status or
whose title is protected;
2 ° To natural persons, de jure or de facto directors of legal persons;
3 ° To natural persons, permanent representatives of legal persons, managers of
legal persons defined in 2 °.
These same provisions are not applicable to natural persons or managers of persons
legal, exercising an independent professional activity and, as such, subject to rules
- – The actions provided for in this chapter are prescribed by three years from the judgment
which declares the opening of the procedure mentioned in I.
Personal bankruptcy entails prohibition to direct, manage, administer or control, directly
or indirectly, any commercial or craft enterprise, any agricultural operation or any
company with any other independent activity and any legal person.
The court may declare the personal bankruptcy of any person mentioned in 1 ° of I of
Article L. 653-1, subject to the exceptions provided for in the last paragraph of I of the same article, against
which one of the following facts was noted:
1 ° To have pursued abusively a loss-making operation which could only lead to the
cessation of payments;
2 ° Repealed.
3 ° Having embezzled or concealed all or part of its assets or fraudulently increased its liabilities.
The court can declare the personal bankruptcy of any manager, de jure or de facto, of a
legal person, who has committed one of the faults mentioned in article L. 652-1.
The court can pronounce the personal bankruptcy of any person mentioned in article L. 653-1
against which one of the following facts has been identified:
1 ° Have exercised a commercial, craft or agricultural activity or a managerial position or
administration of a legal person contrary to a prohibition provided by law;
2 ° Have, with the intention of avoiding or delaying the opening of the reorganization proceedings
judicial or liquidation, purchases for resale below the price or
employed ruinous means to obtain funds;
3 ° Have subscribed, on behalf of others, without consideration, commitments deemed too important
at the time of their conclusion, having regard to the situation of the business or legal person;
4 ° To have paid or caused to be paid, after cessation of payments and with full knowledge thereof,
a creditor to the detriment of other creditors;
5 ° Having, by voluntarily abstaining from cooperating with the procedural bodies, obstructs
its smooth running;
6 ° To have removed accounting documents, not to have kept accounts when the
applicable texts require it, or have kept fictitious accounts, obviously
incomplete or irregular with regard to the applicable provisions.
The court can pronounce the personal bankruptcy of the manager of the legal person who has not
discharged its debts charged to it.
In the cases provided for in Articles L. 653-3 to L. 653-6 and L. 653-8, the court is seized by the
judicial representative, the liquidator or the public prosecutor.
In the collective interest of the creditors, the court may also be seized at any time of the
procedure by the majority of creditors appointed supervisors when the legal representative having
standing has not initiated the actions provided for in the same articles, after a formal notice
remained without follow-up within a period and under the conditions set by decree in the Council of State.
In the same cases as those provided for in the first paragraph, the judge-commissioner may not sit in
the formation of judgment, nor participate in the deliberation.
In the cases provided for in Articles L. 653-3 to L. 653-6, the court may pronounce, in place of the
personal bankruptcy, the prohibition to direct, manage, administer or control, directly or
indirectly, or any commercial or craft enterprise, any agricultural operation and any
legal person, or one or more of these.
The prohibition mentioned in the first paragraph may also be pronounced against any
person mentioned in Article L. 653-1 who, in bad faith, has not delivered to the agent
court, administrator or liquidator the information he is required to communicate to him
in application of article L. 622-6 in the month following the opening judgment.
It can also be pronounced against any person mentioned in article L. 653-1.
who has failed to make, within forty-five days, the declaration of cessation of
payments, without having, moreover, requested the opening of a conciliation procedure.
The right to vote of executives suffering from personal bankruptcy or the prohibition provided for in Article
- 653-8 is exercised in meetings of legal persons subject to a procedure of
safeguard, receivership or liquidation by an agent appointed by the
court for this purpose, at the request of the administrator, liquidator or commissioner of enforcement
The court may order these managers or some of them to sell their shares or shares
companies in the legal person or order their forced transfer through the care of an agent of
justice, if necessary after expertise. The proceeds of the sale are allocated to the payment of the part of the debts
social security if these debts have been charged to the directors.
The court which declares the personal bankruptcy can pronounce the incapacity to exercise a function
elective public. The incapacity is pronounced for a period equal to that of the personal bankruptcy,
within the limit of five years. When the decision has become final, the public prosecutor shall notify
the person concerned the incapacity, which takes effect from the date of this notification.
When the court declares personal bankruptcy or the prohibition provided for in article L. 653-8, it
sets the duration of the measure, which may not exceed fifteen years. He can order the execution
provisional decision. Forfeitures, prohibitions and inability to perform a function
public elective cease automatically at the fixed term, without there being any need for the pronouncement of a
The closing judgment for the extinction of the liabilities, including after performance of the obligation
social debts pronounced against him, reinstates the business manager or the directors of the
legal person in all their rights. He dispenses them or relieves them of all forfeitures,
prohibitions and inability to hold elected public office.
The interested party can ask the court to relieve it, in whole or in part, of the disqualifications and prohibitions.
and the inability to exercise an elective public office if he has made a sufficient contribution
payment of liabilities.
When it has been subject to the prohibition provided for in Article L. 653-8, it may be relieved if it presents
all guarantees demonstrating his ability to manage or control one or more of the companies or
persons covered by the same article.
When there is a total increase in disqualifications and prohibitions and in incapacity, the decision of the
court wins rehabilitation.
Chapter IV: Bankruptcy and other offenses.
Section 1: Bankruptcy.
The provisions of this section are applicable:
1 ° To any trader, farmer, to any person registered in the trades directory and to
any natural person exercising a self-employed professional activity, including a
liberal profession subject to legislative or regulatory status or whose title is protected;
2 ° To any person who has, directly or indirectly, in law or in fact, directed or liquidated a
legal person governed by private law;
3 ° To natural persons who are permanent representatives of legal persons managing
legal persons defined in 2 ° above.
In the event of the opening of judicial reorganization or liquidation proceedings, are
guilty of bankruptcy the persons mentioned in article L. 654-1 against whom
noted one of the following facts:
1 ° Have, with the intention of avoiding or delaying the opening of the reorganization proceedings
judicial process, either made purchases with a view to resale below the price, or employed
ruinous to raise funds;
2 ° Having embezzled or concealed all or part of the debtor’s assets;
3 ° Having fraudulently increased the debtor’s liabilities;
4 ° Have kept fictitious accounts or have removed the company’s accounting documents
or of the legal person or having refrained from keeping any accounts when the applicable texts
make it compulsory;
5 ° Have kept accounts that are clearly incomplete or irregular with regard to the provisions
Bankruptcy is punished by five years’ imprisonment and a fine of 75,000 euros.
The accomplices of bankruptcy incur the same penalties, even if they do not have the quality of
trader, farmer or craftsman or do not direct, directly or indirectly, in law or
in fact, a legal person governed by private law.
When the author or accomplice in bankruptcy is an executive of a company providing
investment services, the penalties are increased to seven years’ imprisonment and 100,000 euros
Natural persons guilty of the offenses provided for in Articles L. 654-3 and L.
654-4 also incur the following additional penalties:
1 ° The prohibition of civic, civil and family rights, according to the terms of article
131-26 of the penal code;
2 ° Prohibition, in accordance with the terms set out in article 131-27 of the penal code, either
to exercise a public function or to exercise professional or social activity in
the exercise or on the occasion of the exercise of which the offense was committed, either to exercise
a commercial or industrial profession, to direct, administer, manage or
control in any capacity, directly or indirectly, for its own account or
for the account of others, a commercial or industrial enterprise or a company
commercial. These exercise prohibitions may be pronounced cumulatively;
3 ° Exclusion from public contracts for a period of five years at most;
4 ° Prohibition, for a maximum period of five years, from issuing checks other than
those which allow the withdrawal of funds by the drawer from the drawee or those which are certified
5 ° The display or dissemination of the decision pronounced under the conditions provided for by
article 131-35 of the penal code.
The criminal court which recognizes one of the persons mentioned in article L. 654-1 guilty
bankruptcy can, moreover, pronounce either the personal bankruptcy of this one, or the prohibition
provided for in Article L. 653-8, unless a civil or commercial court has already pronounced a
such measure by a final decision.
- – Legal persons can be declared criminally liable, under the conditions
provided for by article 121-2 of the penal code, of the offenses provided for by articles L. 654-3 and L.
- – The penalties incurred by legal persons are:
1 ° The fine, in accordance with the terms provided for in article 131-38 of the penal code;
2 ° The penalties mentioned in article 131-39 of the penal code.
III. – The prohibition mentioned in 2 ° of article 131-39 of the penal code relates to the activity in
the exercise or on the occasion of the exercise of which the offense was committed.
Section 2: Other offenses.
Is liable to imprisonment for two years and a fine of 30,000 euros if:
1 ° For any person mentioned in article L. 654-1, to consent during the period
observation of a mortgage or collateral or to make an act of disposal without
the authorization provided for in the second paragraph of Article L. 622-7 or to pay, in whole or in part, a
debt in violation of the prohibition mentioned in the first paragraph of this article;
2 ° For any person mentioned in article L. 654-1, to make a payment in violation of the
terms of settlement of liabilities provided for in the safeguard plan or the recovery plan,
make an act of disposal without the authorization provided for in Article L. 626-14 or proceed to the
transfer of property made inalienable, within the framework of a disposal plan, in application of article L.
3 ° For any person, during the observation period or that of the execution of the safeguard plan
or the reorganization plan, with knowledge of the debtor’s situation, to enter into one of the
of the acts mentioned in 1 ° and 2 ° or to receive an irregular payment.
The following is punishable by the penalties provided for in Articles L. 654-3 to L. 654-5:
1 ° In the interest of the persons mentioned in Article L. 654-1, to remove, conceal or conceal
all or part of the property, movable or immovable thereof, all without prejudice to the application
of article 121-7 of the penal code;
2 ° For any person, to fraudulently declare in the safeguard procedure, to
receivership or liquidation, either in its name or by interposition of
person, supposed claims;
3 ° For any person carrying out a commercial, craft, agricultural or any other activity
independent, under the name of another or under a supposed name, to be guilty of one of the facts
provided for in Article L. 654-14.
The fact, for the spouse, descendants or ascendants or collaterals or allies of
persons mentioned in Article L. 654-1, to divert, entertain or conceal effects depending on
the debtor’s assets subject to a safeguard or reorganization procedure, are punishable by
penalties provided for in article 314-1 of the penal code.
In the cases provided for in the preceding articles, the court seised shall rule, even when there is
1 ° Ex officio, on the reintegration into the debtor’s patrimony of all property, rights or actions
which have been fraudulently removed;
2 ° On the damages that would be requested.
- – Is punished by the penalties provided for by article 314-2 of the penal code the fact, for any administrator,
legal agent, liquidator or commissioner for the execution of the plan:
1 ° To deliberately harm the interests of creditors or the debtor, either by using
profit from the sums collected in the accomplishment of its mission, or by being allocated
advantages which he knew were not due;
2 ° To make, in his own interest, of the powers at his disposal, a use which he knew to be contrary to the
interests of creditors or debtor.
- – Is punished by the same penalties the fact, for any administrator, legal representative, liquidator,
commissioner for the execution of the plan or any other person, with the exception of representatives of
employees, to acquire on their own behalf, directly or indirectly, property of the
debtor or use them for his benefit, having participated in any capacity in the proceedings. The
court seized declares the acquisition null and void and rules on the damages which
would be requested.
The fact, for the creditor, after the judgment opening the safeguard procedure, of reorganization
judicial or liquidation, to enter into an agreement with a particular advantage
payable by the debtor is punished by the penalties provided for by article 314-1 of the penal code.
The court seised declares the nullity of this agreement.
The penalties provided for in Articles L. 654-3 to L. 654-5 are punishable by the fact, for the persons mentioned
in 2 ° and 3 ° of Article L. 654-1, in bad faith, with a view to withdrawing all or part of their
patrimony to the proceedings of the legal person which was the subject of a judgment opening
safeguard, receivership or liquidation or to those of the partners or
creditors of the legal person, to misappropriate or conceal, or to attempt to misappropriate or
conceal all or part of their property, or be fraudulently recognized as debtor of
sums they did not owe.
The fact, for any person, of carrying out a professional activity or functions in violation of the
prohibitions, forfeitures or incapacity provided for in Articles L. 653-2 and L. 653-8, is punished by a
imprisonment for two years and a fine of 375,000 euros.
Section 3: Rules of procedure.
For the application of the provisions of sections 1 and 2 of this chapter, the prescription of the action
public only runs from the day of the judgment opening the safeguard and recovery procedure
judicial or judicial liquidation when the incriminated facts appeared before that date.
The criminal court is seized either on the prosecution of the public prosecutor, or on constitution of
civil party of the administrator, the legal representative, the employee representative, the
commissioner for the execution of the plan, the liquidator or the majority of the appointed creditors
supervisors acting in the collective interest of creditors when the legal representative having
quality to act has not acted, after a formal notice remained without follow-up within a time limit and
conditions set by decree in the Council of State.
The public prosecutor may request from the administrator or the liquidator the delivery of all documents and
documents held by them.
The costs of the lawsuit brought by the administrator, the legal representative, the representative of the
employees, the commissioner for the execution of the plan or the liquidator are supported by the Public Treasury,
in case of release.
In the event of a conviction, the Public Treasury cannot exercise its recourse against the debtor until after the
closure of judicial liquidation operations.
The judgments and sentences handed down in application of this chapter are published in the
costs of the convicted person.