The Dijon Court of Appeal recently gave support to the use of parallel debt provisions in France, albeit on a limited basis. Parallel debt provisions are frequently used in French secured transactions to allow a collateral agent to hold security interests for the benefit of a fluctuating pool of secured creditors, but until this decision there was no French case law confirming that they would be enforceable. In a recent decision as part of the safeguard (sauvegarde) proceedings of Belvédère SA (Dijon Court of Appeal, 21 September 2010, RG n° 09/02080), the Court of Appeal stated that the parallel debt mechanism used in a New York law-governed collateral-sharing agreement did not contravene French public policy, disadvantage any class of creditors, or create any risk of double payment of the underlying obligations. The case is currently being reviewed by the French Cour de Cassation, and it remains unclear whether a parallel debt provision governed by French law would be enforceable, but secured creditors of French debtors should take a degree of comfort in knowing that existing security packages have avoided a potential challenge.