FRANCE Law and Practice Contributed by: Yves Hénaff d’Estrées, HENAFF D’ESTREES
2.9 Insolvency Proceedings 2.9.1 Overview of Relevant Laws and
2.8.7 Deregistration Power of Attorney The Irrevocable Deregistration Authorisation of the Cape Town Convention is not recognised in France because France is not a party to the Convention. 2.8.8 Documents Required to Enforce Deregistration Power of Attorney This is not applicable in France. 2.8.9 Choice of Laws Governing Deregistration Power of Attorney This is not applicable in France. 2.8.10 Revocation of a Deregistration Power of Attorney Once the lease is terminated and the aircraft has been repossessed, the aircraft owner may export the air - craft without the lessee’s consent. The lease gener - ally provides that the lessee will assist the lessor, if and when needed, to facilitate the deregistration and export of the aircraft. The aircraft does not need to be located in France at the time of deregistration. This is not applicable in France. 2.8.11 Owner’s/Lessor’s Consent It is not possible for a mortgagee to deregister and export a registered aircraft. Deregistration of an air - craft from the French aircraft register may be made only by the aircraft owner after any registered mort - gage will have been released by the mortgagee. 2.8.12 Aircraft Export Permits/Licences Export Certificates of Airworthiness for used aircraft are issued in France upon written request to the civil aviation authority in accordance with the applicable European safety regulations. In practice, the process may take from a few days to several weeks. 2.8.13 Costs, Fees and Taxes Concerning Export of Aircraft No significant costs/fees/taxes are charged in respect of the export of an aircraft. 2.8.14 Practical Issues Related to Deregistration of Aircraft Proof of removal of registration marks from an aircraft need not be provided for deregistration to be granted.
Statutory Regimes Governing Restructurings, Reorganisations, Insolvencies and Liquidations Insolvency and other “bankruptcy” proceedings are governed by the French Commercial Code, Book VI, Articles L.610-1 to L.696-1. The main relevant statutes codified in the Commercial Code are: • Law No 85-98 of 25 January 1985 (as modified) and its implementing regulations, which created the new French procedures of judicial reorganisa - tion and judicial liquidation; and • Law No 2005-845 of 26 July 2005 (as modified) and its implementing regulations, which created the procedures of conciliation and safeguard. 2.9.2 Overview of Relevant Types of Voluntary and Involuntary Restructurings, Reorganisations, Insolvencies and Receivership A lessee which is facing financial difficulties has the mandatory obligation to “file for bankruptcy” ( déposer le bilan ) before the commercial court of its registered office when it is no longer able to pay its creditors for • for judicial reorganisation ( redressement judiciaire ) in case there is some hope of finding financial and economic solutions with the assistance of the court to continue its activity; or • for judicial liquidation ( liquidation judiciaire ) in case the economic situation of the lessee’s company is so catastrophic that there is no hope of recovery. The judicial reorganisation or liquidation procedures may also be initiated upon the request of any unpaid creditor or by the public prosecutor. In France, the commercial courts may also help a debtor to solve its financial difficulties by organising, upon the debtor’s request, a procedure of concilia - tion (conciliation) for trying to reach an out-of-court amicable agreement with the creditors, or a proce - dure of safeguard ( sauvegarde ) for the purpose of set - a period of 45 days. The lessee may file:
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