BOOK VI: Company difficulties.

Unless, in the judgment opening the proceedings, a public officer or a sworn goods broker has been appointed to draw up the inventory, it shall be drawn up by the debtor and certified by an auditor or attested by a chartered accountant. The provisions of the fourth paragraph of Article L. 622-6 shall not apply in this case. If the debtor does not initiate the inventory operations within eight days…

I. – The judgment initiating the proceedings entails, ipso jure, a prohibition on the payment of any claim arising prior to the opening judgment, with the exception of payment by way of set-off of related claims. It also automatically entails a prohibition on payment of any claim arising after the opening judgment, not mentioned in I of Article L. 622-17. These prohibitions do not apply to the payment of maintenance…

In the event of the sale of a property subject to a special security interest or a legal mortgage, the portion of the price corresponding to the claims secured by these security interests is paid into a deposit account at the Caisse des dépôts et consignations. Once the plan has been adopted, the creditors benefiting from these security interests or holding a general lien shall be paid out of the…

The business of the company is continued during the observation period, subject to the provisions of articles L. 622-10 to L. 622-16.

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…

When the court declares liquidation, it terminates the observation period and, subject to the provisions of Article L. 641-10, the administrator’s assignment. Under the conditions provided for in the last paragraph of Article L. 622-10, it appoints a person to carry out the appraisal of the debtor’s assets.

When the difficulties that justified the opening of the proceedings have disappeared, the court shall terminate them at the request of the debtor. It shall rule in accordance with the conditions laid down in the fourth paragraph of Article L. 622-10.

I. – Notwithstanding any legal provision or any contractual clause, no indivisibility, termination or resolution of a current contract may result from the sole fact of the opening of safeguard proceedings. The co-contractor must fulfil its obligations despite the debtor’s failure to perform commitments made prior to the opening judgment. Failure to perform these undertakings only gives rise to a right in favour of the creditors to a declaration of…

Without prejudice to the application of I and II of Article L. 622-13, the termination of the lease of buildings leased to the debtor and used for the business’s activity occurs under the following conditions: 1° On the day the lessor is informed of the administrator’s decision not to continue the lease. In this case, non-performance may give rise to damages to the co-contractor, the amount of which must be…

In the event of an assignment of the lease, any clause imposing joint and several provisions on the assignor with the assignee shall be deemed unwritten.