[BANKRUPTCY, INSOLVENCY & REHABILITATION PROCEEDINGS IN FRANCE] 37
maintain part of the business activity by the buyer. The Court receives offers from potential buyers and selects among them, based on three criteria: - the continuation of activities, - the preservation all or part of the employees, - and the repayment of the payable debts. If no buyer wants to acquire the business of the company, or if the Court rejects all offers, the assets of the company are sold separately. 1.2.2.2. The separate Sale of the Company's Assets
Administrator or the Liquidator, so that the latter can contact creditors to declare their claims. The declaration of claim shall indicate the amount due at the date of the opening judgment and, in the case of future claims, the date of payment. Creditors shall declare their claims within two months from the publication of the judgment opening the judicial procedure. The declaration delay is extended by two months for foreign companies. If a creditor does not declare at time, his claim becomes unenforceable, and he is not admitted into the safeguard/recovery plan. In this case, the creditor will not benefit from the sale of assets in the event of liquidation. Within six months of the publication of the opening judgment, creditors may request from the Supervising Judge to neutralize the foreclosure, in exceptional circumstances, such as lack of information from the judicial administrator.
In this case, the profit from the sale of assets is distributed to the creditors of the company, according to priority rules (employees have the highest priority, followed by procedural costs and tax debts, and lastly, unsecured creditors). 2. From the Perspective of Creditors of a Company in difficulty 2.1 The steps to submit a declaration of claim
2.2. Asset recovery
The owner of an asset held by a company (for example under a loan agreement) involved in public and judicial proceedings can request its recovery. The asset recovery procedure applies in the same manners in all three types of judicial proceedings. The owner has a period of three months from the publication of the opening judgment to file a request to the judicial administrator or the
In case of opening of a public and judicial procedure against a company, any creditor may declare his claim with the Judicial Administrator or the Liquidator. Moreover, the company shall provide a prior list of creditors to the Judicial
ILN Restructuring & Insolvency Group – Bankruptcy, Insolvency & Rehabilitation Series
Made with FlippingBook Online newsletter maker