Preventive concordat
An insolvency prevention procedure through which a debtor in difficulty restructures its debts on the basis of a plan negotiated with its creditors.
The preventive concordat is a procedure intended for companies in financial difficulty that are not yet insolvent. The debtor proposes to its creditors a recovery and payment plan, negotiated with the support of a concordat administrator, and the plan approved and ratified by the court becomes binding on the parties.
For the duration of the concordat, individual enforcement actions may be suspended, which gives the company the respite it needs to recover, under the protection of the court and while keeping control of its activity.