ILN: Bankruptcy, Insolvency, and Rehabilitation Proceedings

[BANKRUPTCY, INSOLVENCY & REHABILITATION PROCEEDINGS IN FRANCE] 38

liquidator proving ownership of the claimed asset. The judicial administrator or the liquidator has one month from the receipt of the request to give an answer. If the judicial administrator or the liquidator does not agree on asset recovery or fails to answer within one month, the owner shall refer to the supervising Judge within one month from the expiration of the answer period, or he will be time-barred.

termination takes effect as soon as the other party is informed. The Liquidator or the Judicial Administrator can request the Supervising Judge to terminate the contract when the debtor's obligation is not to pay a sum of money. In this case, the termination shall be necessary for the liquidation process and must not excessively harm the interests of the other party.

However, the co-contractor can ask the Judicial Administrator whether he intends to force carrying on of the agreement. Furthermore, the co-contractor can also initiate early termination, if he requests the Judicial Administrator or the Liquidator to decide on the continuation of the contract, and:

2.3. Continuation

of

the

ongoing

agreements The Judicial Administrator may force the continuation of the ongoing agreements, at the date of the opening judgment. He does not need the co- contractor’s approval. Furthermore, French law prohibits:

If the Judicial Administrator or the Liquidator does not respond within thirty days from receipt of the request, If the Judicial Administrator or the Liquidator replies that the agreement shall not be continued.

Any clause providing that the opening of collective proceedings terminates the agreement, The forfeiture of the agreement term due to the opening of collective proceedings, Any clause providing that the co- contractor may not meet its contractual obligations because of the opening judgment.

If the ongoing contract is continued, the creditor will benefit from priority of payment rank concerning the receivable resulting from the performance of the concerned agreement.

First, early termination can be initiated by the Liquidator or the Judicial Administrator in two cases:

The Liquidator or the Judicial Administrator can terminate the contract when the debtor's obligation is to pay a sum of money. In this case, the

ILN Restructuring & Insolvency Group – Bankruptcy, Insolvency & Rehabilitation Series

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