FRANCE Law and Practice Contributed by: Arnaud Fromion, Frédéric Guilloux and Pierre-Benoît Pabot du Châtelard, Clifford Chance
rity is not frozen through an insolvency proceed - ing faced by the security grantor. The security that is usually enforced is the share pledge granted by the borrower over the shares it holds in its direct subsidiary (ie, the single point of enforcement). To ensure that such security is not frozen by the opening of an insolvency pro - ceeding against the relevant security grantor, some specific structures (double luxco, golden share and double luxco) can be put in place to provide more robustness should a financial restructuring be needed. 6.2 Foreign Law and Jurisdiction Governing Law In any proceedings taken in France for the enforcement of any contractual obligation, the French courts would give effect to the choice of law of any EU member state according to Euro - pean Parliament and Council Regulation (EC) No 593/2008 of 17 June 2008 on the law applicable to contractual obligations (Rome I) (EC Regu - lation 593/2008), provided that evidence as to the content of the relevant law is duly adduced, unless French or foreign mandatory rules ( lois de police ) apply and unless the choice of the relevant law is fraudulent. The ability to have the financing contract subject to a law which is not the law of an EU country depends on the international convention France has entered into with the country in question. Recognition and Enforcement of Foreign Judgment An enforceable and valid judgment for a sum of money rendered by a court of an EU member state will be recognised and enforced by French courts in accordance with the provisions of EC Regulation 44/2001 (1215/2012/EU).
The enforcement in France of a decision ren - dered by a court which does not belong to an EU member state will not be automatic but will be subject to exequatur before a French judge. 6.3 Foreign Court Judgments As mentioned in 6.2 Foreign Lay and Jurisdic- tion , an enforceable and valid judgment for a sum of money rendered by a court of an EU member state will be recognised and enforced by French courts in accordance with the provi - sions of EC Regulation 44/2001 (1215/2012/EU). The enforcement in France of a decision ren - dered by a court which does not belong to an EU member state will not be automatic, but will be subject to exequatur before a French judge. 6.4 A Foreign Private Credit Lender’s Ability to Enforce Its Rights As in many jurisdictions, France has rules for controlling foreign investments in certain sectors which may impact the ability of any foreign entity to enforce its security over certain assets. 6.5 Timing and Cost of Enforcement Three enforcement options are generally availa - ble: (i) a court awarding the secured assets to the secured creditor by means of a court order fol - lowing a valuation by a court-appointed expert (judicial foreclosure), (ii) the sale of the asset by way of a public auction ordered by means of a court order (public auction), and (iii) the secured creditor appropriating the secured asset to itself in accordance with the provisions of the relevant security agreement, following notification in writ - ing ( mise en demeure ) and valuation by an expert appointed by the parties or by the court, save where the value of the secured assets is officially quoted, in which case the recourse to an expert is not required (private foreclosure). Other “self- help” remedies (eg, the secured creditor selling
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