GAL to Test French Insolvency Law

Laughlin, Kate
May 2006
Investment Dealers' Digest;5/29/2006, Vol. 72 Issue 21, p10
Trade Publication
The article presents information on the Global Automotive Logistics's (GAL) test case under the new U.S. Chapter 11-inspired insolvency laws in France. The country's insolvency culture has historically been unfriendly to creditors. The company filed for protection under Procedure de Sauvegarde earlier this month. The law provides committees for financial creditors and trade creditors. Under the law, bondholder rights are tested with regard to shareholders. It is expected that Gal will miss its next interest payment of 5.7 million. The presence of Renault sets GAL's case apart from other potentially insolvent companies.


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