Insolvency Law at Guadeloupe (France)
In Guadeloupe, a French overseas department in the Caribbean, insolvency law is governed by the same legal framework as mainland France. This framework is primarily based on the French Commercial Code and is administered by the local commercial courts. The system offers both consensual (amicable) and judicial (court-supervised) procedures for restructuring and liquidation. (Restructuring and insolvency law in France| CMS Expert Guides)
⚖️ Key Insolvency Procedures in Guadeloupe
1. Mandat Ad Hoc (Mandate Ad Hoc)
Nature: Confidential and informal.
Initiation: Requested by the debtor.
Purpose: To facilitate negotiations with creditors under the guidance of a court-appointed officer.
Duration: No fixed limit; can continue as long as needed.
Stay of Proceedings: Does not automatically halt creditor actions. (Comparisons | Global Practice Guides | Chambers and Partners)
2. Conciliation
Nature: Confidential and court-assisted.
Initiation: Requested by the debtor.
Eligibility: Available if the debtor is in cessation of payments for less than 45 days.
Duration: Up to 5 months.
Stay of Proceedings: The court can grant a suspension of enforcement actions during the process. (Restructuring and insolvency law in France| CMS Expert Guides, Insolvency 2023 - France | Global Practice Guides | Chambers and Partners)
3. Sauvegarde (Safeguard)
Nature: Judicial reorganization.
Initiation: Requested by the debtor.
Eligibility: The debtor must not be in cessation of payments.
Objective: To protect the business and allow for restructuring.
Duration: Observation period of up to 12 months, extendable by 6 months. (Insolvency 2023 - France | Global Practice Guides | Chambers and Partners, French insolvency law reform of 15 September 2021, Restructuring and insolvency law in France| CMS Expert Guides)
4. Redressement Judiciaire (Judicial Reorganization)
Nature: Court-supervised restructuring.
Initiation: Requested by the debtor, a creditor, or the public prosecutor.
Eligibility: The debtor must be in cessation of payments.
Objective: To continue the business and pay off creditors.
Duration: Observation period of up to 6 months, extendable up to 18 months. (Restructuring and insolvency law in France| CMS Expert Guides, Insolvency 2023 - France | Global Practice Guides | Chambers and Partners)
5. Liquidation Judiciaire (Judicial Liquidation)
Nature: Court-supervised winding-up.
Initiation: Requested by the debtor, a creditor, or the public prosecutor.
Eligibility: The debtor must be in cessation of payments with no possibility of recovery.
Objective: To sell assets and satisfy creditor claims.
Duration: Varies depending on the complexity and size of the business. (Restructuring and insolvency law in France| CMS Expert Guides)
📌 Important Considerations
Filing Deadlines: Debtors must file for judicial proceedings within 45 days of cessation of payments to avoid personal liability.
Creditor Participation: Creditors must declare their claims within 2 months of the publication of the opening judgment.
Director Liability: Directors may be held personally liable for mismanagement leading to insolvency.
Employee Claims: Employee claims are given priority in the distribution of assets. (Insolvency 2023 - France | Global Practice Guides | Chambers and Partners)
If you require assistance with a specific insolvency matter in Guadeloupe, such as initiating a procedure, understanding creditor rights, or seeking legal representation, please provide more details, and I can offer further guidance or connect you with appropriate legal resources.
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