Company in difficulty

By Yasmine EDDAM

28 April 2025

Commercial, business and competition law, Company in difficulty

When a company's difficulties reach a critical point, French law provides for specific mechanisms to try to turn it around or, if that is no longer possible, to organise its liquidation in an orderly fashion. At the heart of these so-called collective procedures (judicial recovery and liquidation) lies a fundamental concept: the suspect period. It is of considerable practical importance, as it determines the validity of many acts carried out by the company before the proceedings are formally opened. Understanding how this period is defined, how its start date is set, and what legal action may result from it, is essential for any manager, creditor or partner of a company in difficulty. This article sets out to detail these essential aspects of the legal framework surrounding the suspect period. For an overview of the issues, you can consult our general guide to the suspect period and its consequences. Defining the suspect period: when...