TITLE III: Receivership.

Reorganisation proceedings open to any debtor referred to in Articles L. 631-2 or L. 631-3 who, unable to meet the liabilities due with his available assets, is in suspension of payments, are instituted. A debtor who establishes that the credit reserves or moratoria from which he benefits from his creditors enable him to meet the liabilities due with his available assets is not in cessation of payments. This condition is…

The receivership procedure is applicable to any person carrying on a commercial, craft or agricultural activity as defined in article L. 311-1 du code rural et de la pêche maritime and to any other natural person exercising an independent professional activity including a liberal profession subject to a legislative or regulatory status or whose title is protected, as well as to any legal person under private law. Unless the separate…

The receivership procedure is also applicable to the persons mentioned in the first paragraph of Article L. 631-2 after the cessation of their professional activity if all or part of their liabilities derive from the latter. When a person exercising a commercial or craft activity, a farmer or any other natural person exercising an independent professional activity, including a liberal profession subject to a legislative or regulatory status or whose…

When it is brought to the attention of the president of the court that the debtor is in a state of cessation of payments, the president informs the public prosecutor by means of a note setting out the facts on the basis of which the matter was referred to the court. Under penalty of nullity of the judgement, the president may not sit on the judgement panel or take part…

The opening of receivership proceedings must be requested by the debtor at the latest within forty-five days of the cessation of payments if he has not, within this period, requested the opening of conciliation proceedings.

Where there are no conciliation proceedings in progress, the court may also be seised at the request of the public prosecutor for the purpose of opening receivership proceedings. Subject to the same proviso, the proceedings may also be opened on the summons of a creditor, regardless of the nature of his claim. However, where the debtor has ceased trading, this writ must be served within one year of: 1° Removal…

The members of the social and economic committee may inform the president of the court or the public prosecutor of any fact revealing the cessation of payments by the debtor.

Articles L. 621-1, L. 621-2 and L. 621-3 are applicable to receivership proceedings. The maximum duration of the observation period mentioned in the first paragraph of Article L. 621-3 may exceptionally be extended at the request of the public prosecutor by a specially reasoned decision of the court for a maximum period of six months. When the situation of the debtor who has declared that it is in a state…

The court shall set the date of cessation of payments after seeking the debtor’s observations. If this date is not determined, the cessation of payments is deemed to have occurred on the date of the judgment opening the proceedings. It may be postponed one or more times, but may not be more than eighteen months prior to the date of the judgment opening the proceedings. Except in cases of fraud,…

Article L. 621-4, with the exception of the first sentence of the sixth paragraph, as well as the articles L. 621-4-1 to L. 621-11 shall apply to the receivership proceedings. The court may refer the matter to itself or at the request of the pursuing creditor for the purposes mentioned in the third paragraph of article L. 621-4. It may refer the matter to itself for the purposes mentioned in…