SETTLEMENT OF CREDITORS
LexInter | September 9, 2017 | 0 Comments

SETTLEMENT OF CREDITORS

COMMERCIAL CODE
(Legislative Part)

Section 1: Settlement of creditors

Article L643-1

(inserted by Law n ° 2005-845 of July 26, 2005 art. 1 I, art. 118 Official Journal of July 27, 2005 in force on January 1, 2006 subject to art. 190)

The judgment opening or pronouncing judicial liquidation renders unmatured debts payable. However, when the court authorizes the continuation of the activity on the grounds that the total or partial transfer of the company is possible, the unmatured debts are due on the date of the judgment pronouncing the transfer.
When these claims are expressed in a currency other than that of the place where the judicial liquidation was pronounced, they are converted into the currency of that place, according to the exchange rate on the date of the judgment.

Article L643-2

(inserted by Law n ° 2005-845 of July 26, 2005 art. 1 I, art. 119 Official Journal of July 27, 2005 in force on January 1, 2006 subject to art. 190)

The creditors holding a special privilege, a pledge or a mortgage and the Public Treasury for its privileged claims can, as soon as they have declared their claims even if they are not yet admitted, exercise their right for individual prosecution if the liquidator has not undertaken the liquidation of the encumbered assets within three months from the judgment opening or pronouncing the judicial liquidation.
When the court has set a deadline in application of Article L. 642-2, these creditors may exercise their right of individual action at the end of this period, if no offer including this property has been presented.
In the event of the sale of buildings, the provisions of the first, third and fifth paragraphs of article L. 622-16 are applicable. When a real estate foreclosure procedure has been initiated before the opening judgment, the creditor holding a mortgage is exempt, when resuming individual proceedings, from the acts and formalities carried out before this judgment.

Article L643-3

(inserted by Law n ° 2005-845 of July 26, 2005 art. 1 I, art. 120 Official Journal of July 27, 2005 in force on January 1, 2006 subject to art. 190)

The judge-commissioner may, ex officio or at the request of the liquidator or of a creditor, order the provisional payment of a share of a definitively admitted debt.
This provisional payment may be subject to the presentation by its beneficiary of a guarantee from a credit institution.
In the event that the request for a provision relates to a privileged claim of financial administrations, social security bodies, institutions managing the unemployment insurance scheme provided for by Articles L. 351-3 et seq. Of the Labor Code and institutions governed by Book IX of the Social Security Code,

Article L643-4

(inserted by Law n ° 2005-845 of July 26, 2005 art. 1 I Official Journal of July 27, 2005 in force on January 1, 2006 subject to art. 190)

If one or more distributions of sums precede the distribution of the price of the buildings, the privileged and admitted mortgage creditors contribute to the distributions in proportion to their total debts.
After the sale of the buildings and the final settlement of the order between the mortgage and privileged creditors, those among them who rank useful on the price of the buildings for the totality of their debt only receive the amount of their mortgage collocation. under the deduction of sums received by them.
The amounts thus deducted benefit unsecured creditors.

Article L643-5

(inserted by Law n ° 2005-845 of July 26, 2005 art. 1 I Official Journal of July 27, 2005 in force on January 1, 2006 subject to art. 190)

The rights of mortgage creditors who are partially collocated on the distribution of the price of the buildings are settled according to the amount that remains due to them after the real estate collocation. The excess of the dividends they received in previous distributions over the dividend calculated after collocation is withheld from the amount of their collocation mortgage and is included in the sums to be distributed to unsecured creditors.

Article L643-6

(inserted by Law n ° 2005-845 of July 26, 2005 art. 1 I Official Journal of July 27, 2005 in force on January 1, 2006 subject to art. 190)

The privileged or mortgage creditors, not satisfied on the price of the buildings, compete with the unsecured creditors for what remains due to them.

Article L643-7

(inserted by Law n ° 2005-845 of July 26, 2005 art. 1 I, II Official Journal of July 27, 2005 in force on January 1, 2006 subject to art. 190)

Subject to the third paragraph of Article L. 642-25, the provisions of Articles L. 643-4 to L. 643-6 apply to creditors who are beneficiaries of a special movable security.

Article L643-8

(inserted by Law n ° 2005-845 of July 26, 2005 art. 1 I Official Journal of July 27, 2005 in force on January 1, 2006 subject to art. 190)

The amount of the assets, excluding the costs and expenses of the judicial liquidation, the subsidies granted to the head of the company or to the directors or to their families and the sums paid to the privileged creditors, is distributed among all the creditors at the marc le franc of their admitted claims.
The part corresponding to receivables on the admission of which it would not have been definitively ruled and, in particular, the remuneration of the corporate officers until it has been ruled on their case, is placed in reserve.

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