Lawyer - Insolvency proceedings

When a company is facing serious cash-flow difficulties but still has the potential to bounce back, receivership can be a means of survival, or even strategic recovery. This collective procedure, governed by French law, is an essential option for reconstituting available assets, dealing with outstanding liabilities and re-establishing a sustainable financial situation.

Solent Avocats, based in Marseille, assists company directors and debtors at every stage of these proceedings. Thanks to our proven expertise in insolvency proceedings, we offer comprehensive legal support, from the filing of the declaration of suspension of payments to the implementation of the continuation or sale plan. We act both in court before the Commercial Court and out of court.

Our support helps to reduce risks, negotiate with creditors and preserve business activity within a secure legal framework. We place the company's social interests at the heart of our mission. Our services also include defence before arbitration tribunals or the High Court when the situation so requires.

Why and when should receivership be considered?

Judicial reorganization is a collective procedure which concerns any company carrying on an economic activity that is in a state of suspension of payments. It provides a legal framework for safeguarding working capital, paying debts over time and avoiding immediate liquidation.

This process can be triggered by :

• A summons for payment from a creditor (URSSAF, supplier, etc.);

• A declaration of cessation of payments by the debtor ;

• A request to the public prosecutor in the event of an alert concerning the situation of a company;

• Filing for bankruptcy with the help of a receivership lawyer.

It also makes it possible to deal with complex disputes, while protecting employees and encouraging management reorganisation.

Acting quickly gives you more room to manoeuvre. In some cases, this option may even be preferable to a safeguard procedure.

How do receivership proceedings work?

Initiation of proceedings: application, summons, hearing

The company itself, a creditor or the public prosecutor may request the opening of a receivership. A formal summons is then sent to the Commercial Court or the Court of First Instance, as appropriate.

Our mission is to :

• Prepare the declaration of suspension of payments ;

• Assessing available assets and current liabilities ;

• Drafting observations for the assessment of the bankruptcy judge ;

• Representing the debtor at the opening hearing ;

• Advise on the most appropriate option: continuation, sale or liquidation.

The observation period: a strategic framework

The observation period, generally 6 months renewable, aims to analyse the economic situation of the company, maintain its activity, protect employee jobs and prepare a plan adapted to its capacities.

During this period :

• The court-appointed liquidator or administrator intervenes as appropriate;

• The company continues to operate in a secure environment;

• Creditors are invited to file their claims;

• The debtor can apply for various restructuring measures tailored to the emergency situation.

Drawing up the plan: continuation, sale, alternatives

Depending on the conclusions of the observation, different options may be considered: continuation plan, partial disposal plan, recovery plan or liquidation plan.

The plan contains :

• A debt repayment schedule;

• A realistic projection of sales and costs;

• Social commitments (redundancies, employee retention) ;

• Legal and financial restructuring of the company ;

• Analysis of the benefits of each solution presented.

A well-constructed strategy will give the manager new credibility with financial partners.

Why work with us?

Our firm has significant experience in insolvency lawWe work with the Bar Association and the commercial courts. We also handle proceedings before arbitral tribunals in certain specific disputes.

We act at all stages of the receivership process:

• Strategic advice as soon as financial difficulties arise;

• Filing for bankruptcy, initiating proceedings, monitoring hearings;

• Drafting of the plan, assistance in negotiations with creditors;

• Management of social and tax consequences, protection of personal assets;

• Dialogue with the public prosecutor, procedural bodies and staff representatives;

• Monitoring of legal expenses and optimisation of receivership costs, with transparent lawyer rates.