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mission cannot exceed five months in total. For this reason, companies tend toapply first for the appointment of a mandataire ad hoc before initiating a conciliation.The financial recovery plan may also provide for new equity or debt contributions tobe made by existing shareholders or by new shareholders. This is achieved bysubscribing for new shares or for complex securities, such as convertible bonds, orbonds redeemable in shares. Once executed and acknowledged by the Court, theagreement with the creditors will be binding on the parties to it. The agreement andthe conciliation will remain confidential.Alternatively, the agreement may be formally approved (“homologué”) by the Court.In such a case, the agreement will not remain confidential. However, the creditorswho have signed it will be prevented from initiating any proceedings against thecompany for the payment of the debts covered by the agreement. Also, if asauvegarde or insolvency proceeding is initiated against the company at a later date,the repayment of any cash contribution made to the company in accordance with theagreement will hold a priority position against any debt existing before the opening ofthe procédure de conciliation (except salaries and Court expenses incurred duringthe insolvency proceedings). 52iii. Procédure de sauvegarde 53This procedure, introduced into French law in 2005, takes its inspiration fromChapter 11 of the U.S. Bankruptcy Code. Its purpose is to prevent a troubledcompany from becoming insolvent by providing it with strong protection fromcreditors and giving it time to draw up a recovery plan.52 See the discussion of “Privilège de New Money” in Paragraph III. A. 9. b. ii., supra.53 Code de commerce [C. com] art. L620-1, et seq.38