The French pre-pack proceedings challenged by the Directive Proposal of the European Parliament and of the Council, harmonising certain aspects of insolvency law: the difficulty of finding the balance between transparency and confidentiality
In France, pre-pack proceedings are considered as one of the key restructuring tools. The future transposition in French law of the Directive Proposal, as it now stands, should result in higher recovery rates in France within pre-pack proceedings, as they would require more transparency in the bidding process. However, that very transparency, as well as the increased obligations for the insolvency practitioner, might render the pre-pack proceedings less attractive than they stand today.
Source: Insolvency and Restructuring International, Vol 17, N°1, June 2023