France’s highest appeals chamber, the Cour de Cassation, has recently delivered its first ruling on how new European restructuring rules, inspired by the U.S. Bankruptcy Code’s Chapter 11, should be applied. This decision has drawn mixed reactions from the legal sector.
While some restructuring partners found the ruling to contain useful guidelines, others have criticized it as “very strange” and particularly favorable to debtors. This inaugural ruling provides insight into how France may handle future restructuring scenarios, setting a significant precedent for how similar cases will be adjudicated. The decision reflects the ongoing tension in balancing debtor protection with creditor rights within the European legal framework.
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