Called the “crisis recovery procedure”, this new legal possibility for dealing with business difficulties has been introduced to facilitate their recovery. The measure will only apply for two years, from June 2, 2021 to June 2, 2023.
The new procedure concerns companies with less than 20 employees and whose balance sheet total does not exceed 3M €. It targets companies whose situation was satisfactory before the health crisis created economic difficulties for them.
The company must be in default of payments but still have the necessary funds to pay the wage claims. Only the entrepreneur can request the initiation of this procedure, the creditors not having the possibility. During the procedure, the entrepreneur retains his management power.
New procedure
The new legal procedure only lasts three months, with a single legal representative. The amount of liabilities to be processed is determined by the entrepreneur himself. It establishes the list of claims of each creditor, indicating their amount, their due dates, and the guarantees attached to them. This list of receivables is the basis of the settlement plan drawn up by the business manager with the assistance of the legal representative. The maximum duration of the plan is ten years. From the third year, the annuity cannot be less than 8% of the liabilities.
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