Bankruptcy Law

At any time during the receivership procedure, the court may, pursuant to Article L. 645-9(1) of the Commercial Code, on the report of the court, open the court-supervised liquidation procedure on which a decision has been stayed, if it is established that the debtor is not acting in good faith, or if the investigation has revealed the existence of factors likely to give rise to the sanctions prov …

Conversion to the court-supervised liquidation procedure

At any time during the receivership procedure, the court may, pursuant to Article L. 645-9(1) of the Commercial Code, on the report of the court, open the court-supervised liquidation procedure on which a decision has been stayed, if it is established that the debtor is not acting in good faith, or if the investigation has revealed the existence of factors likely to give rise to the sanctions provided for in Title V of Book VI, or to the application of the provisions of Articles L. 632-1 to 632-3.

In particular, the procedure is converted into a court-supervised liquidation if it appears that the conditions for opening the receivership procedure were not met on the date the court ruled on its opening, or have not been met since . The opening of the procedure may also be requested by the Public Prosecutor or by summons from a creditor or, if the conditions for opening the court-supervised liquidation were not met, by the debtor . The debtor files his application with the court registry . The debtor's professional recovery must be converted into a court-supervised liquidation if the value of his assets exceeds the legal thresholds . Similarly, the debtor's professional recovery procedure, whose liabilities are disproportionate to his realisable assets, must be converted into a court-supervised liquidation, since under Article L. 645-11, “no debt may be written off when it appears that the total amount of liabilities is disproportionate to the value of assets, excluding legally unseizable assets” .

After obtaining the opinion of the public prosecutor, and based on the report of the legal representative or the person chosen on the basis of the first paragraph of II of Article L. 812-2, or III of the same article, the assigned court refers the case back to the court for application of the provisions of Article L. 645-9, or for closure of the professional recovery procedure, without there being any grounds for liquidation . In accordance with Article R. 645-15(2) of the Commercial Code, the judge who refers the case to the court summonses the debtor to appear within the time-limit set by the court registrar, by registered letter with acknowledgement of receipt. The court registrar informs the debtor, where applicable, that he or she may consult the report of the court registrar.

CA Grenoble, 9 January 2020, LawLex202300006113JBJ.

CA Paris, 30 March 2023, LawLex202300007933JBJ.

Bankruptcy Law

966. Conversion to the court-supervised liquidation procedure

Demandez un accès gratuit
au contenu exclusif Livv – juristes d’entreprise

Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

966. Conversion to the court-supervised liquidation procedure

Demandez un accès gratuit au contenu exclusif Livv – juristes d’entreprise

Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

Demandez un accès gratuit
au contenu exclusif Livv – juristes d’entreprise