Franklin acted as legal counsel to AFC Promotion throughout these proceedings.
This confirmation on appeal endorses the soundness of a well-structured plan, overwhelmingly supported by creditors, in a particularly challenging environment for the property development sector.
Initiated on 14 October 2024, AFC Promotion’s administration proceedings took place against a backdrop of a sharp downturn in the property market.
By confirming the plan, the Pau Court of Appeal has validated:
- compliance with the conditions for compulsory cross-class application;
- the plan’s compliance with the test of the creditors’ best interests;
- and the existence of reasonable prospects for the company’s viability.
The Court is thus adopting a pragmatic approach to the treatment of companies in difficulty, prioritising business continuity where this appears economically justified.
Alexandra François-Cuxac, founding chair of AFC Promotion and former chair of the National Federation of Property Developers (FPI), said: “This decision marks the culmination of a demanding collective effort, and I would like to acknowledge the support of our advisers, the trust of our creditors and the dedication of my teams. It confirms the robustness of our recovery strategy and the structural changes we have implemented. AFC Promotion now has the necessary foundations to position itself for the long term in a market undergoing profound change.”
AFC Promotion was advised by Franklin, with a team led by Numa Rengot, partner, Fanny Attal and Pierre Dupuys, Of Counsels, Marouan Fawzi and Karl Mbimbe-Sosso, associates, on the restructuring aspects, as well as by François Verdot, partner, and Nicolas Godefroi, associate, on the real estate law aspects.
Also involved were:
- Eight Advisory (Edouard Dutheil, Alexandre Gras) on the financial aspects.
- CBF Associés (Luc Fourquié, Isabelle Toniut) as the insolvency practitioner.
- Guerin & Associés (Hélène Branchu Bord) as the judicial representative.
This transaction illustrates Franklin’s positioning in complex restructurings and special situations. The firm supports its clients on matters involving significant legal, financial and operational challenges, by mobilising integrated teams capable of intervening at every stage of the process.
