French Commercial code
In forceThe task of the conciliator is to encourage the debtor and its main creditors and, where applicable, its usual co-contractors to reach an amicable agreement aimed at putting an end to the company's difficulties. It may also submit any proposal relating to the safeguarding of the company, the continuation of economic activity and the maintenance of employment. At the request of the debtor and after obtaining the opinion of the participating creditors, the conciliator may be tasked with organising a partial or total sale of the business, which could be implemented, where applicable, as part of subsequent safeguard, receivership or liquidation proceedings.
The conciliator may obtain any useful information from the debtor in order to carry out his task. The president of the court shall provide the conciliator with the information at his disposal and, where applicable, the results of the expert report referred to in the fifth paragraph of Article L. 611-6.
The financial administrations, social security organisations, institutions managing the unemployment insurance scheme provided for in Articles L. 5422-1 et seq. of the Labour Code and institutions governed by Book IX of the Social Security Code may grant debt remissions under the conditions set out in Article L. 626-6 of this Code. Assignments of lien or mortgage rank or the waiver of these sureties may be granted under the same conditions.
The conciliator reports to the president of the court on the progress of his mission and makes any useful observations on the debtor's diligence.
During the proceedings, the debtor may ask the judge who opened the proceedings to apply Article 1343-5 of the Civil Code in respect of a creditor who has put him on notice or sued him, or who has not accepted, within the time limit set by the conciliator, the request made by the latter to suspend the payability of the claim. In the latter case, the judge may, notwithstanding the terms of the first paragraph of the same article, postpone or stagger the payment of outstanding debts, within the limit of the duration of the conciliator's mission. The judge shall rule after hearing the conciliator's observations. He may make the duration of the measures thus taken subject to the conclusion of the agreement provided for in this article. In this case, the creditor concerned shall be informed of the decision in accordance with the procedures laid down by decree in the Conseil d'Etat.
If it is impossible to reach an agreement, the conciliator shall submit a report to the president of the court without delay. The court president terminates the conciliator's mission and the conciliation procedure. His decision is notified to the debtor and communicated to the public prosecutor.
