The French Emergency Act of March 23, 2020 (the “Emergency Act”) established a “state of health emergency” due to the COVID-19 crisis, starting on March 24, 2020 and initially scheduled to expire on May 24, 2020. Pursuant to Act No. 2020-546 of May 11, 2020, the duration of the “state of health emergency” was extended to July 10, 2020.
Pursuant to the Emergency Act, the French government enacted Executive Decree No. 2020-341 on March 27, 2020 (the “First Executive Decree”) and Executive Decree No. 2020-596 on May 20, 2020 (the “Second Executive Decree”, and together with the First Executive Decree, the “Executive Decrees”), bringing about temporary amendments to French bankruptcy law.
This memorandum outlines the main provisions of the Executive Decrees and certain of their implications for distressed companies.