French Commercial code
In forceThe purpose of debt forgiveness is to facilitate the financial restructuring of a company in difficulty, the continuation of its economic activity and the maintenance of employment. Debt forgiveness is not justified if the business is no longer viable. It must not represent an unjustified economic advantage for the beneficiary company. The efforts of public creditors are coordinated with those of other creditors with a view to facilitating the sustainable recovery of the company and enabling the recovery of future public revenues.
The admissibility of the application for remission is subject to the finding that the debtor or, if it is a legal entity, its bodies or representatives, has not been the subject for at least ten years of a final conviction for one of the offences punishable by the articles L. 8224-1, L. 8224-2, L. 8224-3 and L. 8224-5 of the Labour Code.
The application is examined taking into account:
- the efforts made by creditors other than those mentioned in article D. 626-9;
- the financial efforts made by shareholders and directors;
- the debtor's financial situation and the prospects for its long-term recovery;
- the debtor's habitual behaviour towards the creditors mentioned in article D. 626-9;
- any other efforts made by these creditors relating to assignments of lien or mortgage ranking or the waiver of these securities or payment terms already granted.
