Ad hoc mandate

In French insolvency law, the ad hoc mandate (mandat ad hoc) is a confidential preventive procedure allowing a company experiencing financial difficulties to negotiate discreetly with its main creditors under the supervision of a court-appointed ad hoc mandatary (mandataire ad hoc). It is the most flexible French insolvency prevention tool, as it carries no formal timeline constraints and preserves management control. For cross-border groups with Swiss operations, its interaction with Swiss debt restructuring law (sursis concordataire) requires careful coordination to ensure coherent treatment of creditors in both jurisdictions.

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Example: a French group with a Swiss subsidiary uses an ad hoc mandate to renegotiate CHF 18.0 million of bank debt over 4 months, in strict confidentiality. The ad hoc mandatary facilitates an agreement with three creditor banks on a 24-month debt extension and covenant waiver — avoiding formal proceedings that would have triggered cross-default clauses in the Swiss subsidiary's loan documentation.

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Hectelion provides financial advisory support in ad hoc mandates and preventive restructuring procedures in France and Switzerland.