Conference – Rules for Growth and Revue Banque, April 9, 2013

Rule for Growth and Revue Banque Rhave teamed up to organize on 9 April 2013, a conference on restructuring and the impact of the insolvency law on the financing of the economy. The conference was held in the premises of Thomson Reuters in Paris. Practitioners, researchers and stakeholders in restructuring were reunited around two round table.

Introduction : « Towards a euro area continued restructuring ? »
Jacques DELPLA, Associate Professor at Toulouse School of Economics

– Round-table discussion 1 : « Feedback of experiences of the current events in restructuring »

Speakers :
– Hélène BOURBOULOUX, Court appointed administrator, FHB
– Frank GENTIN, honorary President of the Paris Commercial Court
– Stephen PORTSMOUTH, Banker specialized in portfolio management of companies in difficulty
– Sébastien RASPILLER, General Secretary of the inter-ministerial Committee of Industrial Restructuring.

In the middle of the current economic crisis, many restructurings are amicable or placed under the aegis of a commercial tribunal. Different stakeholders of collective procedures, who can be debtors, banking establishment, investment fund, authorized representative will make a quick scan of the emblematic current files insisting on the difficulties faced and the latest adaptations in practice. A comparison will be made between current restructuring waves and the 2008-2009 period. The debate will also determine whether the economic slowdown may create investment opportunities on the market of insolvent companies.

– Round table 2 : « Financial reform, Chapter 11 : what outlook for Bankruptcy law ? »

Speakers :
– Xavier HUBERT, Legal Advisor to the Minister of Productive Recovery
– Yves LELIÈVRE, President of the Nanterre Commercial Court
– Arnaud PÉRÈS, Partner, Davis Polk Law firm
– Sophie VERMEILLE, President of Rules for Growth / Droit & Croissance

Our legal system may shortly initiate a conceptual break regarding the mechanism of resolution of bankruptcy.  Shareholders and unsecured creditors may be evicted in favor of bank creditors  without allowing them to holdout a debt equity swap or force the dissolution of the insolvent company.

Such a progress rests upon the same principles as the US Chapter 11’s principles, or the German one, since the 2012 reform, deserves a serious questioning on the evolution awaited in common law of companies on difficulty.

The ministry of justice has recently initiated a consultation mechanism on the purpose of reforming bankruptcy procedures. What do the different operators expect ? To what extend is a EU harmonization of bankruptcy law desirable ?

Please find :
>>> Summary of the Revue Banque
>>> Jacques Delpla presentation in 2013
>>> Transcript of the conference