Bankruptcy Law

Paragraph 4 of Article L. 622-20 of the Commercial Code, applicable to the court-supervised liquidation procedure by reference from Article L. 641-4, provides that sums recovered as a result of actions brought by the court-supervised liquidator or, failing this, by the creditor(s) appointed as controller(s), are to be allocated to the debtor's assets. Damages awarded to a debtor as compensation fo …

Fate of funds raised

Paragraph 4 of Article L. 622-20 of the Commercial Code, applicable to the court-supervised liquidation procedure by reference from Article L. 641-4, provides that sums recovered as a result of actions brought by the court-supervised liquidator or, failing this, by the creditor(s) appointed as controller(s), are to be allocated to the debtor's assets. Damages awarded to a debtor as compensation for material loss caused by a third party are to be recovered by the liquidator for the benefit of the court-supervised liquidation, so that the court which decides on the principle and must fix the amount must order the third party to pay the liquidator .

Article L. 622-20 provides that the sums recovered are to be allocated, in the event of continued operation, in accordance with the procedures laid down for the discharge of liabilities. They are not distributed among all creditors on a prorata basis, as previously considered by the Court of Cassation, but according to their rank . They cannot be offset against the claim against the debtor held by the condemned third party . Consequently, the debtor's guarantor cannot invoke set-off between the sums recovered and the debtor's debt to the condemned third party, since they enter the debtor's assets to be allocated, in the event of continued operation, in accordance with the procedures laid down for the discharge of liabilities, and to be distributed, in the event of transfer of the business or liquidation, among all creditors, on a pro rata basis .

Cass. com., 9 June 2022, LawLex202200009308JBJ (LJ).

Cass. com., 11 June 2014, LawLex202100001833JBJ (LJ).

Cass. com., 7 April 2009, LawLex202100005448JBJ (LJ).

Cass. com., 28 March 1995, LawLex202200001745JBJ (LJ).

Bankruptcy Law

813. Fate of funds raised

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813. Fate of funds raised

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

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