Post-crisis treatment procedure

Verified 19 December 2023 - Legal and Administrative Information Directorate (Prime Minister)

The exit procedure is a simplified procedure for judicial redress temporary . It is open to small companies in cessation of payments may submit a draft business continuity plan. This procedure, temporarily put in place during the health crisis, is reactivated. It can be requested until november 21, 2025.

The post-crisis treatment procedure shall be open to the following companies:

  • Individual companies (EIs), including micro-companies, engaged in commercial, craft or professional activities
  • Businesses

All of the following conditions must be met:

  • Have less than €3 million of indebted declared outside equity
  • Have fewer than 20 employees at the date of the request to open the procedure
  • Being in a situation of cessation of payments
  • Have the funds necessary to pay your wage claims
  • Have accounts that appear regular, "sincere and capable of giving a true and fair view of the financial situation of the business". In other words, the accounts must reflect the real economic situation of the company.
  • Justify being able to develop a draft continuation plan within 3 months

The opening of an out-of-crisis processing procedure must be requested before the commercial court or the judicial court by the Head of company or the legal representative of the business (manager of an LLC, manager of an SA, etc.).

Who shall I contact

The head of company or legal representative of the business must provide the court with the following documents:

  • Annual accounts for the last financial year
  • State of current liabilities and available assets and a declaration of cessation of payments
  • Registration extract at RNE: titleContent
  • Cash flow situation
  • Projected profit and loss account
  • Number of employees employed at the date of the request and the balance sheet total and the amount of turnover
  • Justification for the payment of wage claims
  • Quantified statement of claims and liabilities
  • Statement of assets and liabilities of collateral and off-balance-sheet liabilities
  • Summary inventory of the debtor's assets
  • Name and address of the representatives of the staff delegation of the Social and Economic Committee
  • Attestation on honor certifying the absence of ad hoc mandate or conciliation procedure concerning the assets in question within the 18 months preceding the date of the application

Please note

This scheme is intended for companies who are able to present a draft business continuity plan within a short period of time and who have very up-to-date accounts.

Once the conditions are met, the court initiates proceedings and appoints a representative to both monitor the company and represent the creditors.

Appointment of the representative and duration of the procedure

The Commercial Court (for commercial and craft activities) or the Judicial Court (for agricultural and liberal activities) appoints an agent to oversee the company and represent creditors. It can be a court administrator or a judicial representative.

The judgment initiating the post-crisis treatment procedure shall start an observation period. This period lasts Maximum 3 months.

After 2 months, the court shall decide whether to proceed with the exit procedure for the remaining month where the company has sufficient financial capacity.

Preparation of the list of creditors

Within 10 days of the opening judgment, the director or contractor shall file at the court registry the list of creditors which he has established. Creditors do not need to to declare their claims as in judicial redress.

The Registrar of the Tribunal shall give a copy of the list to the agent. The official checks the conformity of the list with the company's accounting documents. It shall also inform coobligated persons, those who have agreed to a safety personal or having pledged an asset as security (i.e. pledge or a pledge) the opening of the crisis resolution procedure, by registered letter with request for an opinion on receipt.

Creditors have 1 month to update their claims. This period shall run from the publication of the procedure in the Official Gazette of civil and commercial advertisements (bodacc) or the date on which the claims are communicated by the authorized representative (whichever is the later).

Where a claim is not included in the list of claims and is brought to the notice of the representative, the representative shall inform the creditor by simple letter of the opening of proceedings. The trustee shall ask the creditor for details.

This list of creditors is used to build the continuation plan.

At the end of the observation period, the court has 2 options: either it adopts a continuation plan or it opens a bankruptcy or reorganization procedure.

Continuation Plan

The court shall adopt the continuation plan under the same conditions as those laid down for the backup procedure.

The plan shall only cover claims prior to the initiation of proceedings and included in the list of creditors drawn up by the manager. It does not cover the following claims:

  • Claims related to a contract of employment (wages, holiday pay)
  • Maintenance claims (maintenance)
  • Claims arising out of tort (sums due in connection with a conviction)
  • Claims of less than €500

The plan provides for the payment of the liability to be staggered over a maximum period of 10 years. On the other hand, it cannot provide for the transfer of the company or the redundancies.

The amount of the annual installments provided for in the plan from 3e annuity may not be less than 8% the liability established by the debtor.

Judicial Reorganization or Winding-up

If the company is unable to present a viable continuation plan within 3 months of the opening judgment, a judicial reorganization or liquidation procedure may be initiated if the conditions are met.

It may be requested by:

  • Head of company or the legal representative of the business
  • representative
  • public prosecutor's office