FRANCE
Nerguararian: When a business becomes strained in France, management should immediately set different priority levels. In the short term, directors must be extremely focused on the use and preservation of cash, given that cashflow insolvency is the key trigger of insolvency in France – debtors have 45 days upon becoming cashflow insolvent to file for conciliation or judicial reorganisation proceedings. In the meantime, they will need to find the underlying causes of their problems, be they financial or operational. This self-reflection exercise is often extremely difficult for existing management to conduct, but is critical for a successful turnaround. It is therefore of paramount importance to engage the support of…