France - Bill to adopt by way of orders various measures to simplify and secure the life of businesses

On October 1 2013, the lower house of the French Parliament approved at first reading a bill that will empower the French Government to reform insolvency law by way of orders. This "Bill to adopt by way of orders various measures to simplify and secure the life of businesses" has been drafted following the outcome of working groups set up by the Minister of Justice from March 2013. It is due to be passed by the end of 2013. The orders implementing the measures referred to in the bill should be passed within a four to fifteen-month period.

Article 2 of the bill lists the goals to be pursued regarding insolvency law. For example, the use of preventive measures or procedures should be promoted by widening their scope and laying down provisions encouraging debtors to use them. The search for new financings of businesses under conciliation proceedings should be facilitated, and guarantees potentially attached to them should be improved. The efficiency of Safeguard proceedings should be reinforced, in particular by adapting the effect their opening has on the legal situation of the debtors and of their partners.

France - Removal of code 040 from the FIBEN database

Decree n°2013-799 of September 2 2013 modifying article D.144-12 of the French Monetary and Financial Code has removed code 040 from the French Central Bank (" Banque de France") FIBEN database. Code 040 applied to business owners who had gone through a judicial liquidation within the last three years. Being classified 040 deprived business owners from financings as the FIBEN database can be accessed by both credit institutions, payment institutions, insurance companies and public economic development services and institutions. The decree has entered into force since September 9 2013.