In an article by Solène Davesne on rising corporate insolvencies in France, Numa Rengot discusses the immediate impact of the conflict in the Middle East and the blockade of the Strait of Hormuz on distressed businesses. He explains why restructuring strategies now need to be reconsidered.
Insolvencies continue to rise despite manufacturing’s resilience
Insolvencies rose by 6.4% in the first quarter of 2026, following an already record-breaking year in 2025. Manufacturing is holding up better than other sectors, but experts are concerned about the months ahead.
An energy shock putting direct pressure on margins
Fuel, gas, plastics and fertilisers: rising raw material prices are weighing on businesses’ profitability, and Numa Rengot stresses that the impact is direct and immediate. With state-guaranteed loans reaching maturity, this pressure comes at a time when cash positions are already strained.
Turnaround plans need rethinking
The international situation is changing the business plans underpinning restructuring cases that have been under negotiation for several months and are nearing resolution. The proposed solutions need to be reviewed, requiring advisers and management teams to think creatively.
A surge in restructuring cases and amicable proceedings
In recent weeks, Numa Rengot has seen an increase in restructuring cases and the opening of amicable proceedings in the agri-food, construction materials, transport and petroleum-based goods sectors.
Contractual protection limited to a few months
At best, businesses are protected under their contracts for only two to three months. Unless the situation in the Middle East improves, the impact on insolvencies is therefore expected to intensify over the coming months.
Summer and September: two key milestones to watch
According to Thierry Millon of Altares, quoted in the same article, businesses have, on average, enough cash to cover three months: the effects of the oil price shock could therefore be felt at the start of the summer. The requirement for all businesses to be able to receive electronic invoices from 1 September 2026 could also put pressure on the least prepared SMEs.
Numa Rengot’s advice: anticipate difficulties and think creatively
Anticipating cash flow difficulties, reviewing the assumptions underpinning turnaround plans and engaging with creditors before the situation deteriorates: an amicable approach remains a key tool for preventing distress.
« You need to be a little inventive to find new solutions.»
Numa Rengot, Partner at Franklin, L’Usine Nouvelle, 13 April 2026
Read the article in L’Usine Nouvelle
Is your business facing rising costs, cash flow pressures or a turnaround plan that needs rethinking? Contact Franklin’s Restructuring team.
