Safeguard proceedings (procédure de sauvegarde) is a preventive French insolvency procedure available to companies that are not yet in payment default but face difficulties they cannot overcome alone. Initiated voluntarily by the debtor (unlike judicial reorganisation which requires default), it provides an observation period of 6–18 months during which creditor enforcement is suspended. A safeguard plan — reducing and rescheduling debt over up to 10 years — is negotiated with creditors and approved by the court. In M&A, a company in safeguard remains sellable and may attract investors offering a supervised restructuring framework without the judicial reorganisation stigma.

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Example: a solvent French SME with CHF 3.5 million of maturing debt opens safeguard proceedings to renegotiate payment schedules before reaching default. The court-approved safeguard plan reschedules debt over 8 years — preserving operational continuity. A strategic investor can acquire the company during safeguard, benefiting from the legal protection framework and structured debt resolution without the reputational damage of judicial reorganisation.

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Hectelion advises companies and investors in safeguard proceedings — financial analysis, restructuring plan structuring and investor advisory for companies seeking supervised financial rehabilitation.