The judicial recovery procedure in law

Judicial recovery proceedings

Judicial reorganization is a curative procedure, which is implemented when the company is in a state of proven cessation of payments. According to article L 631-2 of the French Commercial Code, you can benefit from this procedure if you are "any person exercising a commercial, artisanal or agricultural activity, any other natural person exercising an independent professional activity, including a liberal profession (...) as well as any legal person under private law". This procedure is different from the safeguard procedure, since you are no longer the only person who can go to court. You can be summoned by one of your creditors, or at the request of the Public Ministry.

Maître SION's intervention at this stage is done at all stages of the procedure :

• Assistance in the application for the opening of a judicial reorganization procedure which must be filed at the clerk's office or in the face of a writ of reorganization requested by one of your creditors and in the essential description of the state of cessation of payments/ assistance in the filing of the compulsory documents to be attached to the application (indication of the amount of the liabilities due, of the available assets, indication of the amount of the turnover etc.)
• Assistance and intervention during the observation period, which follows the same rules as for the safeguard procedure and lasts 6 months, renewable once
• Assistance and intervention in the elaboration of the recovery plan, which is a mission devolved to the judicial administrator or administrators who will be mandated within the framework of your file and who will elaborate, taking into account our information and our observations, this plan which will then be presented to your creditors as a proposal
• Drafting for you all necessary documents, in particular in the case of certain redundancies for economic reasons, which is not the primary goal but which is sometimes necessary
• Assistance and drafting of all documents in the context of a partial transfer of a branch of activity or total transfer of activity, if it is considered that this transfer can allow the company to recover, with your agreement and under the supervision of the Court
• Analysis with you of the takeover offers proposed by potential buyers
• Answering all your questions at each stage of the procedure on the concrete strategy that you should follow, in complete confidentiality
• Assistance and intervention in the adoption of the recovery plan, allowing the restructuring of your company
• Assistance and advice in the implementation of this plan and its execution