Sophie Vermeille, Managing director at "Droit et Croissance", will present to TSE Students "The Legal System and the Development of Alternative Methods of Financing to Bank Credit; Or How French Bankruptcy Law has Failed to Adapt to the Evolution of the Economy and Finance." on Thursday, 27 november 2014. Room MB II, FROM 5 TO 6.30 PM.
Summary:
Since the beginning of the crisis in 2007, a large number of commentators have predicted a reduction of the contribution made by banks to financing the economy in Europe. This evolving role for banks invites us to re-examine French law, to the extent that the legal system has an impact on the development of alternative methods to traditional bank financing. In France, investors currently perceive a climate of relative legal uncertainty. We consider in detail alternative methods of financings such as: (1) high yield bonds, and; (2) loans made available by hedge funds and other investment funds which are not regulated. We will illustrate our presentation with a case study, the Belvedere Case, i.e. the true story of a French listed company, which got bankrupt and was eventually controlled by hedge funds after a tough fight against the company’s management. This presentation will conclude in favour of a revision of French bankruptcy law in order to favour financial market development.