By Yasmine EDDAM
4 May 2025
The opening of a safeguard or receivership procedure places the company in a delicate situation, marked by the need to continue its business while dealing with its financial difficulties. The observation period, a genuine diagnostic and restructuring phase, raises a fundamental question for the company's survival: what happens to the contracts that are essential to its operation? Suppliers, landlords, customers, employees... contractual relationships are at the heart of economic activity. The law governing companies in difficulty introduces a specific regime that derogates from ordinary contract law, designed to preserve the chances of recovery by allowing the necessary contractual flows to continue. Understanding this system is essential for both the debtor and its commercial partners. The principle: continuation of current contracts required by the administrator Since the primary objective of the observation period is to enable the business to continue, the legislator has set out a principle that is to be applied...
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