Employment preservation vs. creditors' repayment under bankruptcy law: The French dilemma?

► In France, when firms enter bankruptcy, the courts arbitrate between employment preservation (through continuation) and creditors' repayment. ► Courts actively work to facilitate continuation. ► Recovery rates mainly depend on the firm's characteristics while the way the procedure is managed has little impact. ► Continuation does not generate lower recoveries than other outcomes. ► The courts' choice between rival buyout offers confirms that social considerations prevail.