Government measures in key jurisdictions 2nd edition final pages - Flipbook - Page 40
France
Contributor: Aramis Societe D’Avocats
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40
Loans and
financial
support
•
The Government has provided for a guarantee scheme to support bank financing
for businesses. Until December 31, 2020, companies (with the exception of property
companies & banks) may apply for State-guaranteed bank loans which represent up
to 25% of 2019 revenues (or two years of payroll for so-called “innovative” companies
or companies created since 1 January 2019). No repayment will be required during
the first year of the loan. For companies or groups of companies of important
size (>5000 employees or >1.5 billion EUR revenues in France), this loan implies
renouncing to distributing dividends in 2020. A decree of 6 May 2020 from the
Ministry of the Economy and Finance extended the beneficiaries of this scheme to
certain non-trading real estate companies, companies in difficulty since 1 January
2020, “Young Innovative Companies” and loans granted through crowdfunding/
participatory financing platforms.
•
The mechanism of “partial unemployment” has been facilitated for companies
whose employees cannot work because of the COVID situation. Employers get
a reimbursement of 70% of their gross salaries (100% for low salaries), up to a
(relatively high) monthly threshold. The exceptional short-time working scheme for
home-based employees has been extended until 1 June in order to help individual
employers in difficulty to pay their employees and protect them against the risk of
losing their jobs.
Has the
government put in
place any new bank
funding schemes?
Employment
What financial
support is the
government
providing to
businesses and
to individuals on
employment issues?
Insolvency
•
No substantial rules were enacted on insolvency. Deadlines have been extended to
take into account the lockdown situation and commercial courts, who are in charge of
insolvency proceedings, have put in place specific emergency procedures in order to be
able to handle urgent matters. One specific rule presumes that the financial situation of
companies filing for insolvency shall be assessed as it was on March 12, 2020.
•
Specific rules have been enacted to suspend the effects of certain contractual
deadlines The principle is that periodic penalty payments, penalty clauses,
termination clauses sanctioning the failure to fulfil an obligation within a specified
period shall be deemed not to have commenced or to have taken effect if that
period has expired during the “lockdown period” (as defined by the government).
They shall take effect from the expiry of a period of one month after the end
of that period if the debtor has not performed his obligation before that time.
The ending date of the protection period has now been set to June 23, 2020. In
addition, when an agreement may be terminated only during a specified period
or when it is renewed if no termination is notified within a specified period, that
period shall be extended, if it expires during the “lockdown period”, by two
months after the end of the “lockdown period”.
Has the
government made
any changes
to insolvency
legislation?
Contractual
Issues
What measures
have been taken
to reinforce
contracts?
Aurélien Condomines
condomines@aramis-law.com | +33 (0) 1 53 30 77 00
Government measures in key jurisdictions
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