Bankruptcy Law

The Ordinance of 12 March 2014  introduced a new case for the closure of the court-supervised liquidation procedures within Article L. 643-9 of the Commercial Code: when the interest in continuing the liquidation operations is disproportionate to the difficulties of realizing the residual assets, the closure of the court-supervised liquidation must be pronounced by the court, with the debtor heard …

Proportionality requirement

The Ordinance of 12 March 2014  introduced a new case for the closure of the court-supervised liquidation procedures within Article L. 643-9 of the Commercial Code: when the interest in continuing the liquidation operations is disproportionate to the difficulties of realizing the residual assets, the closure of the court-supervised liquidation must be pronounced by the court, with the debtor heard or duly summoned . The proportionality of the interest of continuing the liquidation operations to the difficulties of realizing the assets is assessed from the point of view of the creditors who are to be paid .

The interest of continuing the procedure does not appear disproportionate to the difficulties of realizing the debtor's residual assets when it has not been established that the latter are such as to make the possibility of releasing sums for the benefit of creditors uncertain , or when the sale of the property in question does not present any particular difficulties, notwithstanding the modest balance of liabilities . Similarly, where a building belonging to the debtor is the only asset in the court-supervised liquidation that could be used to partially pay off the debt, the interest in continuing the liquidation process with a view to selling it does not appear disproportionate in view of the difficulties involved in selling the property, especially if these are partly attributable to the debtor's passivity .

Ordinance 2014-326 of 12 March 2014 concerning the reform of the prevention of business difficulties and insolvency proceedings.

CA Nancy, 16 December 2020, LawLex202300004483JBJ (LJ).

CA Bordeaux, 10 November 2021, LawLex202300004486JBJ (LJ).

CA Bourges, 28 October 2021, LawLex202300004493JBJ (LJ).

Bankruptcy Law

941. Proportionality requirement

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

941. Proportionality requirement

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

Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

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au contenu exclusif Livv – juristes d’entreprise