Too many directors see the court as an admission of failure and wait until the last moment to react. The opposite should be done. Insolvency law offers powerful and often confidential tools — provided you act early. Between the first payment delay and cessation of payments, there is a decisive window during which almost anything remains possible.
Maître Léa Scemama advises directors and businesses in Paris on the prevention and treatment of their difficulties, with a constant priority: preserving the activity, jobs and the director's liability.
Prevention: the ad hoc mandate
The ad hoc mandate is the most flexible and discreet prevention procedure. At the director's request, the president of the court appoints an agent to help negotiate with the main creditors (banks, suppliers, tax authorities). Entirely confidential, it resolves a difficulty without alerting partners or the market.
Conciliation
Open to companies facing an actual or foreseeable difficulty without being in cessation of payments for more than 45 days, conciliation aims to reach an agreement with the main creditors under the aegis of a conciliator. The agreement can be recorded or approved, then offering valuable protections, notably the 'new money' privilege for cash providers.
The safeguard procedure
Safeguard is a judicial procedure opened at the request of a company not in cessation of payments. It suspends creditor proceedings and allows, during an observation period, the drafting of a safeguard plan spreading the repayment of liabilities. Its great advantage: the director stays in control of their company.
Judicial recovery
When cessation of payments is established, judicial recovery aims to allow continued activity, preservation of jobs and clearance of liabilities. The firm assists the director throughout the observation period, in drafting the recovery plan and, where relevant, in seeking a buyer in a sale plan.
Protecting the director and their assets
Beyond the company, difficulty exposes the director: action for liability for insufficiency of assets, personal bankruptcy, management ban, enforcement of personal guarantees. The firm anticipates these risks, secures the director's conduct during the sensitive period and defends them if their liability is pursued.
Why a lawyer when facing difficulties?
When facing difficulty, every week counts and every decision commits. The lawyer helps the director choose the right procedure at the right time and protect their liability. This field often meets debt recovery on the creditor side and disputes between partners when the crisis weakens governance.
Frequently asked questions
What is the state of cessation of payments?
It is the inability to meet due liabilities with available assets. Its occurrence requires the director to declare cessation of payments within 45 days, unless conciliation is sought. Beyond that deadline, the director is exposed to sanctions.
What is the difference between safeguard and judicial recovery?
Safeguard opens at the request of a company not yet in cessation of payments but facing difficulties it cannot overcome alone; the director keeps control. Judicial recovery presupposes cessation of payments and aims to allow continued activity and clearance of liabilities.
Are amicable procedures confidential?
Yes. The ad hoc mandate and conciliation are confidential, flexible and negotiated procedures, allowing difficulties to be handled away from partners view. That is their whole point: preserving trust and the value of the business.
Is anticipating really worthwhile?
It is decisive. The earlier difficulties are addressed, the more numerous and effective the options. A director who seeks advice at the first signals has powerful levers; one who waits for cessation of payments has often already lost them.