This involves buying a business that is still in operation.
Only two procedures – receivership or judicial liquidation (with continued operation) – allow for the “sale of the business” as a solution to the procedure, provided that such a sale is in the interests of the creditors.
When a business undergoing collective proceedings is to be sold, the insolvency practitioner or liquidator in charge of these operations looks for buyers.
Companies to be taken over are listed on Actify.
Prospective buyers should take note of the conditions and deadlines for submitting an offer by carefully studying the provided documentation.
Offers must be submitted within the set deadlines in order to be admissible.
Article L642-2 of the French Commercial Code specifies the content of the offer:
“II.- All offers must be in writing and must state:
1) A precise description of the assets, rights and contracts included in the offer;
2) Business and financing forecasts;
3) The price offered, the terms of payment, the status of the capital providers and, if applicable, their guarantors. If the offer proposes recourse to a loan, it must specify the terms and conditions, in particular its duration;
4) The date on which the sale will be completed;
5) Employment levels and prospects for the business in question;
6) Guarantees obtained to ensure completion of the offer;
7) Forecasts for asset disposals over the two years following the disposal;
8) The duration of each of the undertakings entered into by the bidder;”
Any submitted offer may not be withdrawn. It may be improved up to two working days before the date of the hearing.
The prospective buyer must then be heard by the Court to explain his project.
As a general rule, the purchase price must be paid by the day of the hearing at the latest. It is therefore up to the prospective buyer to secure financing even before being declared a buyer by the Court.
