[BANKRUPTCY, INSOLVENCY & REHABILITATION PROCEEDINGS IN FRANCE] 44
or the Liquidator, so that the latter can contact creditors to declare their claims. The declaration of claim shall indicate the amount due at the date of the opening judgment and, in the case of future claims, the date of payment. Creditors shall declare their claims within two months from the publication of the judgment opening the judicial procedure. The declaration delay is extended by two months for foreign companies. If a creditor does not declare at time, his claim becomes unenforceable, and he is not admitted into the safeguard/recovery plan. In this case, the creditor will not benefit from the sale of assets in the event of liquidation. Within six months of the publication of the opening judgment, creditors may request from the Supervising Judge to neutralize the foreclosure, in exceptional circumstances, such as lack of information from the judicial administrator. 2.2. Asset recovery The owner of an asset held by a company (for example under a loan agreement) involved in public and judicial proceedings can request its recovery. The asset recovery procedure applies in the same manners in all three types of judicial proceedings. The owner has a period of three months from the publication of the opening judgment to file a request to the judicial administrator or the 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. 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: • 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. 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 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.
ILN Restructuring & Insolvency Group – Bankruptcy, Insolvency & Rehabilitation Series
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