The administrator organises the « piloting » of a distressed company and actively participates in its recovery. He is the evident partner for companies wanting to further analyse their problems, resolve outstanding crises and implement appropriate solutions to the successful turnaround of the business. The scope of his mission varies according to the task at hand. The effectiveness of his intervention depends nevertheless on his appointment being timely – the sooner the better. His work is becoming less cumbersome due to a softening of the legislation and the promotion of prevention measures under the Safeguard Law. Companies are now calling upon his services at the first signs of distress. His “out-of-court” interventions correspond to the ongoing modernisation of his role.
Assistance options to distressed companies:
Prevention for distressed companies:
- Consultations available to all company directors or merchants.
- Ad hoc mandates, allowing the confidential handling of company difficulties and negotiations with its partners (employees, bankers, suppliers, clients, etc…)
- Conciliation as per the new Safeguard Law of 26 July 2005, which came into force on 1 January 2006.
Interim administration of companies and management on behalf of third parties:
Voluntary liquidation of companies:
When shareholders have decided to wind up a solvent company, the administrator takes on the role of liquidator. He proceeds with all administrative requirements necessary to the liquidation:
- accounting records
- closing or sale of sites, cancellation or transfer of contracts,
- disposal of assets
- payment of all amounts owing on accounts
- dispute and litigation resolution,
- reparation of the annual accounts within 3 months following the closure of each fiscal year.
In the case of the opening of a Safeguard proceedings, or Reorganization leading to:
- The supervision of management.
- Assistance to companies.
- Administration of companies (not applicable in Safeguard)
Consultation and advice:
As for commercial businesses, the estates and affairs of individual persons can be managed by an administrator.
Advice or consultation in matters of inheritance, jointly-held property, estate management, confiscations or mandate relative to a person placed under legal protection (guardianship, trusteeship, etc….)
– Designated as interim administrator of non-trading companies, co-ownerships, joint possession inheritances, communities or sequestered funds.
– Designated as administrator on receivership of legal entities in the forms of non-trading companies, liberal professions since the 1 January 2006.