Different kinds of plans for recovery

Résumé du document

In order to talk about the different recovery plan, we have to tell why the safeguard plan is not a part of it. This safeguard plan is different from all recovery plans mainly because of its preventive aspect. In fact, the opening of the procedure of a safeguard plan can be made by the debtor that gives proof of the difficulties he's not able to carry out and can lead him to cessation of payments. In contrary, the opening of a recovery plan is applicable only after the company is in cessation of payments. Thus, the safeguard is a procedure where you can use a real collective procedure at a time when the company is not in cessation of payments. This safeguard plan has been implemented by the law of the 26th of July 2005 and came into force by the 1st of January 2006. It has been inspired by the American law.

Moreover, the winding up will neither be included among recovery plans. This procedure is effective only when the recovery plan or the safeguard plan have failed or when the company is in cessation of payments and that the recovery happens to be impossible. It represents more like an "end" of a company and less an attempt to recover a company in difficulties.

Extraits

[...] To Conclude In the event of no respect of the recovery plan, the court can pronounces its resolution and converts the procedure into a winding up. II. Recovery by way of continuation 1. What is the plan of continuation? As we just saw, the plan of continuation allows a company in difficulty, but economically sustainable, to not disappear and to be able to continue to carry on its activities when serious possibilities of recovery and repayment of the liabilities exist. [...]

[...] Other measures: forced execution: in case of non payment of the assignment's price civil‘s responsibility action: if the buyer doesn't respect non financial agreements (employment Conclusion To finish, let's resume the main and global points about the different recovery plans : We know that common rules are applicable among all recovery plans and that since the new law of the 26th of July 2005, a simplified plan can be adopted for some companies. [...]

[...] Different kinds of plans for recovery Introduction In order to talk about the different recovery plan, we have to tell why the safeguard plan is not a part of it. This safeguard plan is different from all recovery plans mainly because of its preventive aspect. In fact, the opening of the procedure of a safeguard plan can be made by the debtor that gives proof of the difficulties he's not able to carry out and can lead him to cessation of payments. [...]

[...] The assignment's effects The buyer's role: About the assignment's price: he engages himself to pay a price which will be divided between the creditors and it is the Creditors' representative who divides the price between them. About the debts: the buyer doesn't take into account the company's liabilities in judicial recovery. About the employment: he has to ensure a level of employment (in terms of quantity), he can also hire more employees. In case of inexecution of the plan Cancellation: If the buyer doesn't respect his agreements, the court may pronounce the cancellation (resolution) of the assignment. But, a creditor or everybody interested can also take this initiative. [...]

[...] This procedure is effective only when the recovery plan or the safeguard plan have failed or when the company is in cessation of payments and that the recovery happens to be impossible. It represents more like an of a company and less an attempt to recover a company in difficulties. I. Common rules of plans for recovery 1. Definition The recovery plan is established when a company is in difficulty. This one allows the safeguard of the company, the employment, the perennity of the activity and the auditing of the liabilities. [...]