French "ordonnance" legislation puts borrowers in driving seat with lenders sweating on the sidelines

Interview of Caroline Texier and Mehdi Abdelouahab

This article was published in Debtwire and is hosted with permission from the publisher.

The French government’s new legislation – Ordonnance n° 2020-596 of 20 May – should help halt the number of lockdown-related bankruptcies and further shockwaves, but it could mean bad news for lenders. In fact, the legislation could weaken lender protection and negotiation power, and it could prove particularly problematic for direct lenders, according to four sources familiar with the situation.