22.02.2021Stéphan Alamowitch

Small bondholders helpless against the rule of the majority – Bulletin Joly Bourse, November-December 2020

Going against investor protection imperatives, France’s highest court (Cour de cassation) came down with a harsh ruling denying small bondholders almost any right to challenge the content of the business recovery plan approved by the general meeting of bondholders. Even if the plan’s provisions favor majority bondholders, small bondholders have no right to sue for abuse of majority power. Coming at a time when public authorities look to promote bond financing, the decision seems rather untimely.

Click HERE to read the commentary of decision no. 18-19.737 handed down by the Cour de cassation on February 26, 2020, written by our partner Stéphan Alamowitch and law professor Myriam Roussille, published in Bulletin Joly Bourse’s November-December 2020 issue.