The transposition of a directive gives rise to a lively debate around the power of creditors and shareholders in restructuring cases. On the one hand, alternative funds want to be able to convert their debt into capital. On the other hand, the directors want to preserve the balance of companies in difficulty. A decisive showdown as bankruptcy cases risk exploding with the crisis.

The debate opens on the place of Paris to transpose the European directive on corporate insolvency.

Are we going to bring in alternative funds through the main door to the capital of French companies in difficulty? The question is tearing the place of Paris apart, while the Ministry of Justice is preparing the transposition of a European directive, and the takeovers of companies such as SoLocal, Technicolor, Vallourec and Europcar follow one another against the backdrop of the economic crisis.

The draft text, which is the subject of a consultation until February 15, provides, in fact, to strengthen the rights of creditors to the detriment of shareholders, in the adoption of a plan in the preventive phase (before termination payments), and facilitate the conversion of the former into capital to gain control.