Bankruptcy Law

The court pronounces the closure of the court-supervised liquidation when the continuation of liquidation operations is rendered impossible due to insufficient assets, after having heard or duly appealed to the debtor . Insufficient assets are deemed to exist when the proceeds from the realization of the debtor's assets and the actions and procedures undertaken in the interest of the company or it …

Insufficient assets

The court pronounces the closure of the court-supervised liquidation when the continuation of liquidation operations is rendered impossible due to insufficient assets, after having heard or duly appealed to the debtor . Insufficient assets are deemed to exist when the proceeds from the realization of the debtor's assets and the actions and procedures undertaken in the interest of the company or its creditors are no longer sufficient to pay off the creditors, even partially .

On the other hand, the court-supervised liquidation may not be closed due to insufficient assets if the amount of assets exceeds the amount of liabilities  or if a sum of EUR 57,000 is still deposited with the Deposit and Consignment Office (Caisse des dépôts et consignations) . Pending legal proceedings, where they are likely to result in financial judgments in favor of the debtor, may also prevent closure . Lastly, closure cannot be pronounced as long as assets, which remain seizable, would enable creditors to be at least partially paid off . A liquidator who intends to accept the estate that the debtor wanted to refuse, with a view to selling the real estate included in it, has standing to act even if the debtor has requested closure of the insolvency procedure because of the duration of the procedure . Difficulties in realizing one of the debtor's assets, due to its undivided nature, or the prospect of a low sale price, do not characterize the impossibility of continuing the court-supervised liquidation procedure for lack of assets .

Cass. com., 12 March 2013, LawLex202300006888JBJ (LJ).

CA Bastia, 25 November 2020, LawLex202300004476JBJ (LJ).

CA Bastia, 25 November 2020, LawLex202300004476JBJ (LJ); CA Bordeaux, 30 January 2023, LawLex202300004482JBJ (LJ). A contrario, Caen, 29 October 2020, LawLex202300004479JBJ (LJ), pronouncing the closure of the court-supervised liquidation, when the action contesting the emoluments due to the liquidator, pending before the court, is not of such a nature as to remedy the insufficiency of assets in such a proportion as to allow the continuation of the liquidation operations or the closure for extinction of liabilities.

Cass. com., 9 November 2004, LawLex202300006889JBJ (LJ); 5 March 2002, LawLex202200000871JBJ (LJ).

Cass. com., 20 March 2019, LawLex202300006884JBJ (LJ).

Cass. com. 22 January 2008, LawLex202300004308JBJ (LJ); CA Bourges 22 August 2013, LawLex202300004481JBJ (LJ). Comp, Cass. com, 14 September 2002, LawLex202300003337JBJ (LJ), holding that closure is justified, notwithstanding the existence of a seizable fraction of the debtor's retirement pension, when the liquidator is unable to obtain a writ of execution to seize it and continue the operation.

Bankruptcy Law

940. Insufficient assets

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940. Insufficient assets

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

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