[BANKRUPTCY, INSOLVENCY & REHABILITATION PROCEEDINGS IN FRANCE] 36
certain claims by the company; and a Judicial Administrator who supports and assists the company to find solutions.
process for the business of the company with the approval of the company. If the situation worsens during the observation period and/or if there is no prospect of reaching an agreement with the creditors, the court may decide to convert the Judicial Safeguard or Judicial Recovery procedure into a Judicial Liquidation of the company (see 1.2.2).
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The Judicial Administrator:
supervises the company's daily operations, including financial transactions and major decisions (such as employee layoffs, asset sales, etc.). The Judicial Administrator can refuse management from taking actions that would diminish the company's asset value. If the Court requires it, the administrator shall approve any payments initiated by the company; and negotiates with creditors to establish a debt restructuring plan.
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1.2.2. Judicial Liquidation
The Judicial Liquidation aims to sell all the company's assets to pay its debts. The Court will appoint a Liquidator who: - shall list the company's debts; and - sell the business or the assets (separately) of the company. Even during Judicial Liquidation, the Court may order the continuation of business activities for 3 months in special circumstances (such as the time to shut down machines in the industrial sector). 1.2.2.1. The Global Sale of the business of the Company The Court can decide to sell the business: thus, the court initiates a tender procedure for all assets and employees of the company and try at least to
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At any time during the observation period, the court may be requested to approve a debt restructuring plan negotiated with creditors. A typical plan can include both debt rescheduling and debt forgiveness. The company may also request the Court to approve the sale of the business of the company if a buyer is found. The judicial administrator may also initiate a public sale
ILN Restructuring & Insolvency Group – Bankruptcy, Insolvency & Rehabilitation Series
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