Chapter II: The company during the observation period.

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.

In the event of safeguard proceedings, the lessor only has a lien for the last two years of rent prior to the judgment opening the proceedings. If the lease is terminated, the lessor also has a lien for the current year, for everything relating to the performance of the lease and for any damages that may be awarded against him by the courts. If the lease is not terminated, the…

I.-Debts properly arising after the opening judgment for the purposes of the conduct of the proceedings or the observation period, or in consideration for a service provided to the debtor during that period, shall be paid when due. II.-.Where they are not paid on the due date, these claims are paid by lien before all other claims, whether or not accompanied by liens or security interests, with the exception of…

Any sums collected by the administrator or the mandataire judiciaire that are not transferred to the debtor’s bank or postal accounts, for the purposes of continuing the business, must be paid immediately into a deposit account at the Caisse des dépôts et consignations. In the event of delay, the administrator or the mandataire judiciaire shall owe, for the sums that they have not paid, interest at a rate equal to…

Any sum paid by the association mentioned in article L. 143-11-4 of the Labour Code in application of Articles L. 143-11-1 to L. 143-11-3 of the same code gives rise to a declaration to the tax authorities.

The mandataire judiciaire appointed by the court has sole standing to act on behalf of and in the collective interest of the creditors. However, in the event that the mandataire judiciaire fails to act, any creditor appointed as controller may act in that interest under conditions laid down by decree in the Conseil d’Etat. The mandataire judiciaire shall be entitled to give formal notice to a partner or shareholder to…