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Commercial or craft activity

To apply (called request(b) the opening of the conciliation procedure, fill in the document next:

Request for the opening of a conciliation procedure

FYI  

Only the leader of the company may request the opening of a conciliation procedure.

The query must specify the next items :

• Economic, financial and social situation of the company
• Planned financing plan and profit and loss account
• Financing needs and, where appropriate, the means to meet them
• Remedial measures envisaged
• Time limits for payment or debt forgiveness for the implementation of these measures

Please note

When the company is in cessation of payments, the head of company or the head of office shall specify the date in the request.

The attachments to the request are as follows:

• Extract Kbis or certificate of registration in the National Register of companies (RNE)
• Status of debts and debts, with a schedule and a list of the principal creditors
• Statement of assets and liabilities of collateral
• Assets and liabilities of off-balance-sheet commitments (e.g. leasing transactions, discounts granted to a company by its creditors)
• Annual accounts, financing table, statement of assets available and realizable, operating values excluded, liabilities due for the last 3 financial years, if these documents have been drawn up
• Honor certificate certifying the absence of conciliation procedure within 3 months before the request
• Declaration indicating, if necessary, that the costs of the procedure are to be borne by a third party.

This request must be filed or sent in 2 copies the Commercial Court or the Economic Activities Court (EAT).

Indeed, since the 1^er january 2025, the commercial courts of 12 cities are replaced by Economic Activity Tribunals (EAT) for the processing of ad hoc mandate procedures, conciliation procedures and collective proceedings. The courts of the following cities are concerned: Avignon, Auxerre, Le Havre, Le Mans, Limoges, Lyon, Marseille, Nancy, Nanterre, Paris, Saint-Brieuc and Versailles.

The Ministry of Justice provides a simulator to know the competent court:

Know the court competent for procedures for the prevention or treatment of difficulties

Please note

For more information on EATs, please visit:

Companies in difficulty: designation and establishment of economic activity tribunals

Directorate of Legal and Administrative Information (Dila) - Prime Minister

Pour en savoir plus

Liberal activity

To apply (called request) for the initiation of the conciliation procedure, the form below shall be completed:

Request for the opening of a conciliation procedure

FYI  

Only the leader of the company may request the opening of a conciliation procedure.

The query must specify the next items :

• Economic, financial and social situation of the company
• Planned financing plan and profit and loss account
• Financing needs and, where appropriate, the means to meet them
• Remedial measures envisaged
• Time limits for payment or debt forgiveness for the implementation of these measures

Please note

When the company is in cessation of payments, the contractor or manager shall specify the date in the request.

The attachments to the request are as follows:

• Extract Kbis or certificate of registration in the National Register of companies (RNE)
• Status of debts and debts, with a schedule and a list of the principal creditors
• Statement of assets and liabilities of collateral
• Assets and liabilities of off-balance-sheet commitments (e.g. leasing transactions, discounts granted to a company by its creditors)
• Annual accounts, financing table, statement of assets available and realizable, operating values excluded, liabilities due for the last 3 financial years, if these documents have been drawn up
• Honor certificate certifying the absence of conciliation procedure within 3 months before the request
• Declaration indicating, if necessary, that the costs of the procedure are to be borne by a third party
• Professional order on which the company depends (e.g. Architects' Order or Veterinarians' Order)

This application must be filed with the Court of Justice or the Economic Activities Tribunal (TAE).

Indeed, since the 1^er january 2025, the courts of 12 cities are replaced by Economic Activity Tribunals (EAT) for the processing of ad hoc mandate procedures, conciliation procedures and collective proceedings. The courts of the following cities are concerned: Avignon, Auxerre, Le Havre, Le Mans, Limoges, Lyon, Marseille, Nancy, Nanterre, Paris, Saint-Brieuc and Versailles.

The Ministry of Justice provides a simulator to know the competent court:

Know the court competent for procedures for the prevention or treatment of difficulties

Warning  

The court has jurisdiction over the following regulated professions of law: lawyers, notaries, commissioners of justice, registrars of commercial courts, court administrators and judicial agents.

For more information on EATs, please visit:

Companies in difficulty: designation and establishment of economic activity tribunals

Directorate of Legal and Administrative Information (Dila) - Prime Minister

Pour en savoir plus

Appointment of the conciliator

The conciliator shall be appointed by the President of the Tribunal. The name of the conciliator may be offered by the company.

Most often, the conciliator is a court administrator.

Mission of the conciliator

The conciliator assists the manager or entrepreneur in implementing solutions to ensure the continuity of the company (e.g. negotiation of payment terms with banks or suppliers).

In agreement with the manager or contractor, the conciliator shall draw up a memorandum of understanding to be negotiated with the creditors the company to obtain payment periods or debt forgiveness.

Duration of the conciliator's assignment

The conciliator shall be appointed for a maximum period of 4 months. This duration may be extended by one month at the request of the conciliator, the total duration of which shall not exceed 5 months.

Remuneration of the conciliator

The conciliator's remuneration shall be borne by the company. It is agreed with the entrepreneur or manager.

Preparatory period before the signature of the Agreement

Together with the Head of company, the Conciliator shall draw up a list of those who will be invited to participate in the negotiations with a view to seeking an agreement. The aim of the conciliation procedure is to reach an amicable agreement between the company and its main parties creditors (e.g. tax administration, social agencies, bank), to resolve financial difficulties.

During the negotiation of the conciliation agreement, the company in difficulty may obtain from the judge payment periods (up to 2 years) in respect of a creditor who has assigned in payment.

Signing of the conciliation agreement

The troubled company and the main creditors agree to put certain measures in place: they will formalize the agreement and then have it confirmed or approved by the president of the court. 

The conciliation agreement enables the company in difficulty to obtain the following:

• Payment periods for company debts
• Debt forgiveness
• Interest rebates and penalties for late payment

Creditors who have signed this agreement must respect the payment deadlines. If the agreement is not respected by the parties, the court is seized by a creditor party to the agreement or the company may declare the agreement void.

Payment periods may also be granted for the duration of the execution of the agreement in respect of a claim not covered by the agreement.

Recognition or approval of the conciliation agreement

Once signed, the friendly agreement adopted by the creditors is:

• Be established by a order of the president of the tribunalat the request of the creditors and the company in difficulty. The agreement remains confidential.
• Either approved by judgment of the court at the request of the company in difficulty only. The procedure is no longer secret.

Recognition of the agreement

The president of the court, at the request of the creditors and the head of company (or the manager), shall establish the agreement. This makes the agreement enforceable, i.e. it must be enforced by the parties.

Approval of the Conciliation Agreement

Only the Head of company may apply to the court for approval of the agreement. The following conditions must be met:

• The company in difficulty is not in cessation of payments or the agreement ends it.
• The terms of the agreement ensure the continuation of the company's activities.
• The agreement preserves the interests of creditors non-signatories.

The existence of the approved agreement is published in the Registry of the Commercial Court but not its content. The procedure is therefore no longer confidential.

The company in difficulty shall inform the Social and Economic Committee (ESC) of the approved agreement where one exists.

Within the framework of the approved agreement, the creditors who have provided new cash flow (or have provided new goods or services) have a new money privilege that is, they have a payment privilege over other creditors in the event of a subsequent opening of a collective proceedings .

Thus, when collective proceedings are opened, creditors must report to the judge-commissioner that they have a new money privilege. They cannot be subject to payment delays but they will be paid after the employees and after certain legal costs.

Inability to reach an agreement

Where the creditors and the company in difficulty fail to reach an agreement, the conciliator shall submit a report to the President of the Court.

The latter puts end of the conciliator's mission and the conciliation procedure. This decision shall be communicated to the head of the company in difficulty and to the public prosecutor's office.

Where the conciliation procedure has failed as a result of the refusal of certain creditors to participate in a conciliation agreement, the company may have recourse to a accelerated safeguard procedure.

The company can also use the standard backup procedure. If the situation worsens and is in danger cessation of payments, it must have recourse to judicial reorganization or winding-up proceedings.

Non-fulfillment of commitments under the Conciliation Agreement

The President of the Court shall be seized by one of the parties to the conciliation agreement. It may be a creditor or the company in difficulty.

If it finds that the commitments (e.g. debt rescheduling) have not been implemented, it may terminate the agreement.