French Commercial code
In forceThe court that approved the plan may, after hearing the opinion of the public prosecutor, decide to terminate it if the debtor does not fulfil its commitments within the time limits set by the plan.
When the debtor's payments cease during the implementation of the plan, the court that approved the plan decides, after receiving the opinion of the public prosecutor, to terminate the plan and initiate legal reorganisation proceedings or, if reorganisation is manifestly impossible, legal liquidation proceedings. Before making its decision, the court shall examine whether the debtor's situation meets the conditions set out in articles L. 645-1 and L. 645-2 and, where appropriate, with its agreement, initiates a professional recovery procedure.
The judgment that resolves the plan puts an end to the operations and to the procedure if it is still in progress. Subject to the provisions of the second paragraph of Article L. 626-19, it causes the creditors to recover all of their claims and securities, less any sums collected, and entails forfeiture of any payment period granted.
II. - In the cases mentioned in the second and third paragraphs of I, the matter is referred to the court by a creditor, the commissioner for the execution of the plan or the public prosecutor.
III. - After the plan has been wound up and new proceedings have been opened by the same judgment or by a subsequent decision stating that this winding up has led to the cessation of payments, the creditors subject to this plan or admitted to the liabilities of the first proceedings are exempted from declaring their claims and securities. Claims under this plan are automatically admitted, after deduction of sums already received. Claims brought to the attention of one of the persons mentioned in IV of article L. 622-17 under the conditions provided for in that text shall also benefit from the exemption from declaration.
