[RESTRUCTURING, COLLECTIVE PROCEEDINGS] Transposition of the Restructuring and Insolvency Directive in France: Evolution or Revolution for Creditors and Equity Holders?

Following the transposition of the Directive, French insolvency law—which was already on the right track with regard to pre-insolvency proceedings—now meets international standards. By following the Directive to the letter, French law introduced voting by creditor classes, whereby creditors can be subject to a cram-down, including cross-class cram-downs. Furthermore, equity holders can be assigned to a class and squeezed out, which was a highly controversial issue during the legislative process.

Anja Droege Gagnier

Source: Insolvency and Restructuring International, Vol. 16, No. 1, April 2022