Ordinance 2021-1193, which effects into law the European Directive on preventive restructuring frameworks, applies to proceedings opened from 1 October 2021.

Key Points:

..Certain preventive mechanisms are strengthened and certain measures, which are part of the COVID legislative framework are confirmed.

..New accelerated safeguard proceedings (‘”sauvegarde accélérée”) are introduced to serve as the key proceeding for effecting into law the European directive.

..The Ordinance introduces classes of affected parties and the application of cross-class cram-downs.

..The “post-money” privilege is confirmed.

..The Ordinance reinforces the differentiation between safeguard and reorganisation proceedings and limits the application of a “term-out”.

..The Ordinance clarifies the applicable regime to securities in insolvency proceedings.