At any time during the observation period, the court, at the request of the debtor may order the partial cessation of business.
Under the same conditions, at the request of the debtor, the administrator, the judicial representative, the public prosecutor or ex officio, it shall convert the proceedings into a receivership, if the conditions of Article L. 631-1 are met, or pronounces the judicial liquidation, if the conditions of article L. 640-1 are met.
At the request of the debtor or, at the request of the administrator, the judicial representative or the public prosecutor, where no plan has been adopted in accordance with the provisions of Article L. 626-30-2 and, where applicable, article L. 626-32 by the classes mentioned in section 3 of chapter VI of this title, it also decides on the conversion into a receivership if the adoption of a safeguard plan is manifestly impossible and if the closure of the proceedings would lead, in a certain manner and within a short period of time, to the cessation of payments.
It rules after having heard or duly summoned the debtor, the administrator, the judicial representative, the auditors and the person or persons designated by the social and economic committee and having obtained the opinion of the public prosecutor.
When it converts the safeguard proceedings into judicial reorganisation proceedings, the court may, if necessary, modify the duration of the observation period still to run or extend it for a maximum of six months. The classes already constituted prior to this conversion, in accordance with Section 3 of Chapter VI of this Title, shall be maintained with the same procedures for distributing and calculating votes, without prejudice to pending appeals. The operations of constituting the classes shall continue notwithstanding the conversion.
For the purpose of carrying out the appraisal of the debtor’s assets in the light of the inventory drawn up during the safeguard proceedings, it shall designate, in consideration of their respective attributions as they result from the provisions applicable to them, a judicial auctioneer, a bailiff, a notary or a sworn goods broker.