Chapter II: The company during the observation period.

I.-The opening judgment interrupts or prohibits any legal action on the part of all creditors whose claim is not mentioned in I of Article L. 622-17 and seeking: 1° To order the debtor to pay a sum of money; 2° To rescind a contract for failure to pay a sum of money. II.-Without prejudice to the rights of creditors whose claim is mentioned in I of Article L. 622-17, the…

Subject to the provisions of article L. 625-3, the proceedings in progress are interrupted until the pursuing creditor has declared his claim. They are then resumed ipso jure, the judicial representative and, where applicable, the administrator or the commissioner for the implementation of the plan appointed pursuant to article L. 626-25 duly called, but tend only to the establishment of claims and the fixing of their amount. The debtor, a…

Litigation and enforcement proceedings other than those referred to in Article L. 622-21 are pursued during the observation period against the debtor, after the judicial representative and the administrator have been called into question where they have a mission to assist or after proceedings have been resumed on their initiative.

Where assets or rights present in a fiduciary estate are the subject of an agreement under which the settlor debtor retains the use or enjoyment of such assets or rights, no assignment or transfer of such assets or rights may be made to the fiduciary or to a third party by reason only of the opening of the proceedings, the adoption of the plan or a default in payment of…

From the date of publication of the judgment, all creditors whose claims arose prior to the opening judgment, with the exception of employees, must send the judicial representative a declaration of their claims within the time limits set by decree of the Conseil d’Etat. Where the creditor has been released from foreclosure in accordance with article L. 622-26, the time limits only run from the date of notification of this…

The declaration shall state the amount of the claim due on the date of the opening judgment, with an indication of the sums due and the dates on which they fall due. It shall specify the nature and basis of the security, if any, attached to the claim and, where applicable, whether the contractual real security has been constituted on the debtor’s assets as security for the debt of a…

The declaration of claim interrupts the statute of limitations until the proceedings are closed; it dispenses with any formal notice and is equivalent to an act of prosecution.

In the absence of a declaration within the time limits provided for in Article L. 622-24, creditors shall not be admitted to distributions and dividends unless the official receiver relieves them of their foreclosure if they establish that their default is not due to their fault or that it is due to an omission by the debtor when drawing up the list provided for in the second paragraph of l’article…

If there is a discussion on all or part of a claim other than those mentioned in Article L. 625-1, the judicial representative shall notify the interested creditor, inviting him to make his explanations known. Failure to respond within thirty days prohibits any subsequent challenge to the mandataire judiciaire’s proposal, unless the discussion relates to the regularity of the declaration of claims.

The opening judgment shall stop the accrual of legal and contractual interest, as well as all late payment interest and surcharges, unless it concerns interest resulting from loan contracts concluded for a term equal to or greater than one year or contracts with a deferred payment of one year or more. Natural persons who are co-obligated or who have granted a personal guarantee or who have assigned or transferred an…