FWIW, this is a fairly straightforward explanation of the redressement judiciare proceedings, keeping in mind the Gauzy has said they will (aor may already have) appealed the process.
PURE SPECULATION :Maybe the $20 million is there to fend off a 3rd party takeover attempt?
Scenario if a single creditor brought the case (info current as of (07/2022):
"Particularities of the recovery procedure
The company becomes immediately available for transfer to any third party interested in retaking it and relaunching the activity if they can better the offer of the current managers. Additionally, it’s the judge who will determine the salaries of the director and his associates, or anyone involved in the management of the company.
Unlike in the safeguard process, during the “redressement judiciaire” it’s the experts appointed by the judge who will elaborate the inventory of the belongings of the company, not the enterprise itself.
During the recovery procedure, the past debts of the company are also put aside and a “new” accountancy is established to allow the business to function again. These debts will be included afterwards in the recovery plan. However, exceptionally urgent payments will have to be paid immediately.
During the recovery procedure, all the legal ways to individually prosecute the enterprise are blocked, meaning that the creditors cannot demand their benefits.
The phases of the recovery procedure
An enterprise requesting or being demanded a recovery process has to provide a dossier to the registry of the Commercial Court that reflects its exact accountancy situation so that they estimate its chances to survive once the recovery plan is over. If it’s thought to be able to overcome its insolvency situation, then the procedure is opened.
After pronouncing the opening of the process, the attorney verifies the debts and makes a publication in the Bodacc. The creditors can then make their claims in a 10 days period after the publication if they disagree. After this period, the company is put on an observation plan, where the attorney determines the payment deadlines for these debts in a maximum of 10 years.
It’s important to note, however, that the creditors have two choices as of how to claim their debts:
- Either part of the debts are paid immediately or,
- They receive the totality of the due amount in the course of the recovery plan.
As mentioned before, during the observation phase, the company cannot be prosecuted by the creditors, and the interests cannot be increased. The phase lasts for 6 months initially and it’s renewable two times, going for a maximum of 18 months." |
