Insolvency Law at Saint Barthélemy (France)
Saint Barthélemy, an overseas collectivity of France, follows French national insolvency laws. Therefore, the insolvency framework applicable in Saint Barthélemy is consistent with that of mainland France.
⚖️ French Insolvency Law Overview
French insolvency law encompasses both consensual (amicable) and judicial (court-administered) procedures. The primary legislation governing these proceedings is the French Commercial Code, which outlines various mechanisms to address corporate and individual insolvency. (Restructuring and insolvency law in France| CMS Expert Guides)
1. Judicial Safeguard (Sauvegarde Judiciaire)
Eligibility: Available to companies facing financial difficulties but not yet in a state of cessation of payments (i.e., not insolvent).
Objective: To allow the company to continue operations while negotiating a debt restructuring plan with creditors.
Duration: The observation period can last up to six months, renewable up to a maximum of 18 months. (Restructuring and insolvency law in France| CMS Expert Guides, Insolvency 2023 - France | Global Practice Guides | Chambers and Partners)
2. Judicial Reorganisation (Redressement Judiciaire)
Eligibility: Applicable when a company is in cessation of payments but its recovery is deemed possible.
Objective: To facilitate the continuation of the business, the preservation of employment, and the settlement of debts through a reorganisation plan.
Duration: The observation period can last up to six months, renewable up to a maximum of 18 months. (Restructuring and insolvency law in France| CMS Expert Guides, Insolvency 2023 - France | Global Practice Guides | Chambers and Partners)
3. Judicial Liquidation (Liquidation Judiciaire)
Eligibility: Initiated when a company is insolvent, and its recovery is considered unfeasible.
Objective: To liquidate the company's assets and distribute the proceeds among creditors.
Procedure: A liquidator is appointed to manage the sale of assets and the settlement of debts.
4. Simplified Liquidation
Eligibility: Available for small businesses meeting specific criteria, such as having no real estate assets, employing five or fewer employees, and generating annual revenue below €750,000.
Objective: To expedite the liquidation process with reduced formalities.
Duration: Typically completed within six months, extendable by up to three months. (Insolvency 2024 - France | Global Practice Guides | Chambers and Partners)
5. Accelerated Safeguard (Sauvegarde Accélérée)
Eligibility: Can be initiated after voluntary conciliation proceedings if there is a pre-negotiated restructuring plan with creditor support.
Objective: To implement a rapid restructuring plan, potentially over the objections of certain creditor classes.
Duration: Lasts two months, extendable by an additional two months. (French Insolvency Law Reform – Rebalancing Of Power Among Stakeholders - Insolvency/Bankruptcy - Insolvency/Bankruptcy/Re-Structuring - France, French Insolvency Law Reform – Rebalancing Of Power Among Stakeholders - Insolvency/Bankruptcy - France)
🕒 Key Deadlines for Creditors
Filing Claims: Creditors must declare their claims within two months from the publication of the insolvency judgment in the Official Gazette (BODACC).
Extension for Foreign Creditors: Creditors domiciled outside France have up to four months to file their claims. (Insolvency 2023 - France | Global Practice Guides | Chambers and Partners, French Insolvency Law for Expatriates - FrenchEntrée)
Failure to file within these timeframes may result in the creditor being excluded from the distribution of proceeds. (Insolvency 2023 - France | Global Practice Guides | Chambers and Partners)
🧾 Insolvency Procedures in Practice
Commencement: Insolvency proceedings can be initiated by the debtor, a creditor, or the public prosecutor.
Court Involvement: The court appoints a judicial administrator or liquidator to oversee the proceedings.
Creditors' Rights: Creditors are grouped into classes based on the nature of their claims and may vote on proposed restructuring plans. (Restructuring and insolvency law in France| CMS Expert Guides, Insolvency 2023 - France | Global Practice Guides | Chambers and Partners)
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