By Yasmine EDDAM
16 April 2025
When a business is navigating troubled waters, facing headwinds - be they economic difficulties, major disputes or financial tensions - the instinct may be to wait, hoping for a lull. However, waiting for the situation to reach the critical point of cessation of payments is not always the only way out. French law offers a mechanism designed specifically for companies that are anticipating the storm: the safeguard procedure. Introduced in 2005, this legal procedure aims to provide a protective framework for companies that, although experiencing serious difficulties that they cannot overcome on their own, are not yet in a state of cessation of payments. It is a voluntary approach, a sort of hand outstretched by the law to enable reorganisation before it is too late. This article takes a detailed look at how the safeguard procedure works: what are the...
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