By Yasmine EDDAM
12 June 2025
When a company encounters insurmountable financial difficulties, collective procedures such as safeguard, receivership or liquidation offer a legal framework for managing the situation. However, this common law system, well known to entrepreneurs, does not apply as such to players in the financial sector. Banks, finance companies and insurance companies are subject to special rules that are profoundly different. This specificity is no mere technical detail: it aims to protect the entire economic system and the customers of these establishments. Understanding these mechanisms is essential to anticipating the consequences of a failure in this sector. This article sets out the specific features of the judicial insolvency procedures applicable to these companies, which fit into a much broader overall legal framework for regulated companies in difficulty. Why a system that differs from ordinary insolvency law? The main aim of insolvency law is to preserve the company's...
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