The judicial liquidation procedure is applicable to:
- any commercial, craft, agricultural or liberal enterprise (natural or legal person);
- and legal persons governed by private law (associations, civil societies, etc.).
A judicial liquidation procedure is opened against a person in a state of insolvency, that is to say in the impossibility of meeting the payable liabilities with the available assets, and whose receivership must be manifestly impossible.
The commercial court opens judicial liquidation proceedings which are:
- either a simplified judicial liquidation procedure under certain conditions
- or a judicial liquidation procedure under ordinary law .
Simplified judicial liquidation procedure
The duration of the judicial liquidation procedure under common law
For ordinary liquidation, the court sets a period after which the closure of the proceedings must be examined. If this period cannot be respected, the court may extend it by reasoned decision.
At the expiration of a period of two years from the judgment of judicial liquidation, any creditor may also apply to the court for the purpose of closing the proceedings.
With regard to the simplified judicial liquidation, the procedure is closed at the latest one year after the opening of the liquidation by the court.
At any time, the court can decide to revert to the common law procedure by specially reasoned judgment.
Fixing of the date of suspension of payments
The court determines the date of cessation of payments. If he cannot fix it with precision, it is deemed to have taken place on the date of the judgment which establishes it.
Opening of judicial liquidation
Bodies of the liquidation procedure
The company in compulsory liquidation
Closure of the judicial liquidation procedure
The court pronounces this when there are no more due liabilities or when the liquidator has sufficient sums to pay off the creditors or when the continuation of the liquidation operations is made impossible due to insufficient assets.