EMEA Special Situations: French distressed activity on the increase as insolvency laws drive more mid-market processes

Restructuring activity is on the rise in France, according to advisors, as new insolvency laws facilitate more mid-market processes and pandemic-era LBO deals approach maturity with significant leverage.

French companies with approximately €40.5bn of debt are noted as stressed, distressed, or ‘on watch’ by LFI, including groups like Colisee in nursing homes, Cerba in medical labs, and Netceed in telecoms equipment.

France currently ranks third in the number of businesses within LFI EMEA’s special situations universe, following the UK and Germany. . The difference between France and Germany has diminished since January. At the end of March, French companies made up 17% of those tracked by LFI data, compared to 18% for Germany. However, at the beginning of 2025, their shares were 14% and 19% respectively.