Blog about entrepreneurship

The recovery procedure of a company with difficulties is a business restructuration process known in France as “redressement judiciaire”.

Unlike the procedure of safeguard, the company has effectively ceased its payments, but it still seems possible to retake the company and relaunch its activity. The procedure is indeed very similar to the safeguard one, and it also applies to any type of enterprise.

The simplified process of liquidation of an insolvent enterprise applies to individual companies without real estate.

There are two types of “liquidation judiciaire simplifiée” (or simplified legal liquidation) in France. The eligible enterprises fall into either category according to their average revenues and the number of employees they have. These two types of simplified liquidation are known as compulsory and facultative.

A company that is no longer able to pay its creditors and employees is subject to a legal process of liquidation.

The process is called in France “liquidation judiciaire” and it takes place when the company enters in a state of “cessation des paiements”.